Assessed vs Market vs Appraised Value Explained | Real Estate Guide

Explaining Assessed, Market, and Appraised Values 🏡📊

Did you know your home can have three different values at the same time? If you're buying, selling, or simply planning ahead, understanding these numbers can make a big difference in your decisions.

Let’s break down the three key types of home values: assessed value, market value, and appraised value—and why each one matters.

🧾 What Is Assessed Value?

The assessed value is determined by your local tax authority. This value is used to calculate your property taxes.

It’s important to know that assessed value doesn’t always reflect what your home would sell for in today’s market. Instead, it’s based on a formula set by your municipality, which may not update as frequently as market conditions change.

💰 What Is Market Value?

Your home’s market value is what buyers are actually willing to pay for it in the current real estate market.

This value is influenced by several factors, including:

• Location
• Property condition
• Recent comparable sales (comps)
• Market demand

Market value is especially important when you're selling your home or trying to make a competitive offer as a buyer.

📑 What Is Appraised Value?

The appraised value is determined by a licensed appraiser, typically during a home purchase or refinance.

Lenders use this value to decide how much they are willing to finance. Even if a buyer agrees to a higher price, the lender will base the loan on the appraised value—not the purchase price.

🔍 Why Understanding These Values Matters

Each of these values plays a different role:

• Assessed Value → Impacts your property taxes
• Market Value → Determines your home's selling price
• Appraised Value → Affects your loan approval and financing

Understanding how they work together helps you:

• Avoid pricing mistakes when selling
• Make smarter offers when buying
• Prevent surprises during the appraisal process

The more you understand these numbers, the more confident you’ll feel navigating today’s real estate market.

🎥 Learn More

👉 Watch the full video to get a deeper understanding of how each value works and what it means for your home:
https://youtu.be/x73CsKRsYKM?si=JMw--NfV_8YI4ocE

🤝 Need Help Understanding Your Home’s Value?

Thinking about buying or selling and want clarity on your home’s true value? Let’s connect and break down the numbers together.

Andrew Urban | REALTOR®
CA DRE # 01752023
📞 (707) 738-7545
📧 andrew.urban@kw.com
🌐 https://www.myurbanhometeam.com/index