Assessed value, appraised value, and market value: what's the difference?

Short answer

Assessed value is the county number for property tax, appraised value is the lender number for a mortgage, and market value is what a ready, willing, and able buyer will actually pay for your home. For a seller, market value is the one to act on.

Full answer

Assessed value is the county's number. It is the figure your local government uses to calculate your property tax, it updates on its own schedule, and it often lags the market. Your tax bill is based on it, but it is not what your home would sell for, and it can sit above or below the real market for years at a time. Appraised value is the lender's number. When a buyer gets a mortgage, the lender orders an appraisal to confirm the home is worth what the contract says. The appraiser compares the home to recently settled sales and writes a number that protects the bank's loan.

Market value is the one that matters most when you sell. It is what a ready, willing, and able buyer will pay for your home right now, and it moves with the market and with your home's condition, updates, and how it shows. Sellers who price off their tax assessment or a past appraisal often set the wrong target, sometimes frustratingly so. Know which number you are looking at, and you will stop getting tripped up: the assessed value explains the tax bill, the appraised value matters at closing, and the market value drives your strategy. If you want to know which one applies to your situation, tell me a little about your plan and I will point you straight. Get a free online estimate for a first look, or book a 15-minute consult and I will tell you which number applies to your plan.

The three numbers, explained

Assessed vs appraised: the mix-up most people have

The way I like to explain it to people is that assessed value and appraised value are both official numbers that come from outside the sale, so it is easy to lump them together as "the value." But they answer two different questions: assessed value answers the tax collector, and appraised value answers the lender. Neither one tells you what a ready, willing, and able buyer will actually pay. The tightrope version: the city measures the rope and the inspector certifies that it will hold, but the real test is whether someone is willing to walk across it.

What this means when you're selling

When you sell, the number to focus on is market value, not your tax assessment and not a past appraisal. Pricing is a strategy, not a formula, and the right target depends on your home's condition, how it shows, and what buyers are doing right now. The real number comes from a conversation with a local agent who knows your market, and that is a conversation I would welcome.

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