What’s the Difference Between Assessed and Appraised Market Value?

How much is your home worth? How much should you pay for your next home?  

These are questions about market value—a figure best determined by a licensed or certified appraiser. Appraisers are typically employed by:

• Homebuyers, to confirm for lenders that a property is worth the loan amount.
• Property tax or appraisal districts, to assess a property’s market value for tax purposes.

Appraisers rely on two primary methods to determine market value:

1. MLS Data
   The local multiple listing service (MLS) provides detailed information about active listings, recent sales, and tax records. Appraisers analyze factors such as days on market, price changes, and square footage to identify market trends and comparable sales.
2. Observation
   A visual inspection of the property helps appraisers evaluate its condition and compare it to similar homes within the same neighborhood.

It’s important to remember that a home’s market value isn’t set in stone. Ultimately, true market value is the price a willing buyer agrees to pay—and a willing seller agrees to accept—for a given property.