Assessed value vs appraised value

The assessed value and appraised value are both used in real estate, but they serve different purposes:

• Assessed value: This is the value assigned to a property by a local government or tax authority for the purpose of determining property taxes. It’s often calculated based on a percentage of the property’s market value, but the method can vary depending on the location. The assessed value may be lower than the market value, and it can be appealed if the property owner feels it is too high.
• Appraised value: This is the value determined by a professional appraiser who evaluates a property based on its condition, location, and comparable sales (comps) in the area. The appraised value is typically used during a sale or refinancing to determine the worth of the property in the current market.

In short, assessed value impacts taxes, and appraised value reflects market value.

Here’s a table summarizing the differences between assessed value and appraised value:

Feature	Assessed Value	Appraised Value
Purpose	Determines property taxes	Determines the market value of a property
Assigned By	Local government or tax authority	Professional appraiser
Calculation	Based on a percentage of the market value or a set formula	Based on property condition, location, and comparable sales
Frequency	Annually or periodically, depending on the locality	Typically done during the sale or refinancing of a property
Used For	Property tax assessments	Mortgage lending, buying, or selling a property
Appealable	Yes, if the property owner disagrees with the valuation	Generally not, unless there’s an error in the appraiser’s process

What do you think?