You open your property‑tax bill and choke on the number, yet your agent swears the house would fetch $100K more if you listed tomorrow. How can one home have two wildly different price tags? Welcome to the fascinating tug‑of‑war between assessed value and market value, a perennial hot topic on every real estate agents blog.
When you own, buy, or sell a house, you’ll run into both numbers again and again. Assessed value is the figure your county uses to calculate property taxes. Market value is what buyers in the current market would realistically pay. Confusing them can derail your finances, whether you’re setting an asking price, appealing taxes, or refinancing. Below, we break down how each metric is created, who uses it, and why a savvy homeowner tracks both. Follow along and you’ll graduate from valuation rookie to the kind of informed reader real estate agent bloggers love.
Key Takeaways
- Two numbers, two purposes: taxes vs. true sale price.
- Assessed value is usually lower and updated on a schedule.
- Market value swings with buyer demand and economic trends.
- Knowing both helps you price, refinance, and appeal taxes wisely.
How Assessors Arrive at “Assessed”
County assessors review neighborhood sales, factor in square footage, age, condition, amenities, and then multiply the estimated market value by an “assessment ratio” (often 60–90 percent). That product becomes your assessed value. It’s updated on a fixed cycle, say, every three years, so it tends to lag behind a hot market.
Why it matters: Property tax bills are based on this lower, often older, figure. If you think it’s unfairly high, appeal it with recent comparable sales.
How the Market Dictates “Market”
A home’s market value is a moving target shaped by supply, demand, interest rates, and buyer sentiment. Agents calculate it through Comparative Market Analyses (CMAs), appraisers certify it for lenders, and buyers validate it with their offers.
Why it matters: The market value sets your listing price, loan‑to‑value ratio when refinancing, and available equity for cash‑out loans.
When the Two Diverge What to Do
- Selling soon? Ignore assessed value. Price according to neighborhood comps and current demand.
Also read: 5 Mistakes You Must Avoid While Selling Your House
- Refinancing? A fresh appraisal reflecting market value boosts equity and unlocks better terms.
- Tax bill shock? Gather evidence from recent sales, prove the assessor overshot, and file an appeal.
- House‑hunting? Remember that low taxes today (thanks to a stale assessment) could rise after a county‑wide update.
Across every real estate agents blog, experts agree: treat assessed and market values as distinct tools in your financial toolbox, not interchangeable figures. Use each in the situation it was designed for – tax planning versus pricing strategy and you’ll navigate homeownership like a pro.
Who Looks at What? (Stakeholder vs. Preferred Value)
| Stakeholder | Cares About | Reason |
| County Treasurer | Assessed Value | Sets annual property tax bill |
| Listing Agent | Market Value | Prices home to attract buyers |
| Mortgage Lender | Market Value | Determines loan‑to‑value ratio |
| Taxpayer (You) | Both | Manages budget and equity strategy |
FAQs
2. Will my property taxes rise immediately if market values jump?
Not until your next reassessment. Counties follow set cycles or trigger reassessments upon sale.
3. How do I contest an assessed value I think is too high?
File an appeal with your county, citing recent comparable sales and any home deficiencies.
4. Which value matters when pulling a HELOC?
Lenders rely on current market value verified by a new appraisal, not the county’s assessed figure.
Armed with this knowledge, you can talk numbers confidently with your agent, tax assessor, or lender and maybe even guest‑post your insights on the next real estate agents blog alongside veteran real estate agent bloggers.