Understanding the difference between assessment value & market value

by Ann Hayward 10/07/2024

In the world of real estate, you will hear the terms assessed value and market value often. Whether you’re a homebuyer, seller, or simply a homeowner calculating your property taxes, these terms are of high importance. 


What is the meaning of assessed value?

Assessed value is a sum used to determine the property taxes of a property. During the assessment process, a government assigned assessor considers the condition of the home, property location, market conditions and qualities of the home. 

Once they have compared the features of the house, similar properties in the same area and other conditions, they can officially assign a value to your home, which aids in determining property taxes. 


What is the difference between appraisal & market value?

Whereas appraisal value is based on a professionally assigned appraiser’s examination of the home for tax assessed values, market value is created by homebuyers. 

When a property is listed on the market to be sold, the monetary amount homebuyers are willing to pay for the home and what banks are willing to invest constitutes the market value.  


Can appraised value be higher than market value?

Market conditions play a huge role in market value in comparison to appraised value. If there are more sellers than buyers, there’s a higher chance the market value will be less than the appraised value. 

However, if the market is hot and there are more buyers than sellers, your home’s market value may be more than what it’s apprised for.

As you prepare to buy, sell or strengthen your homeownership journey, knowing your market and assessed value can be beneficial for budgeting and gauging a listing price.


About the Author
Author

Ann Hayward

Born in Philadelphia and raised in the suburbs, Ann Hayward got her Pennsylvania real estate license at age 18 even before going to college. This second-generation real estate professional followed in the footsteps of her father and two uncles, inheriting their passion for the business. Licensed in DC, Maryland and Virginia, Ann is accomplished in her career, with numerous designations including SFR, SRES, PSA, WHC, and multiunit Housing Development Finance Professional (HDFP) from the National Development Council. She specializes in Prince Georges and Montgomery Counties, Northern Virginia and Washington, DC, all jurisdictions where Ann has lived and knows very well. In addition to her professional expertise, she owns and manages personal investment property, understands and has been involved in the renovation/remodeling process, and has great resources which she shares with clients. When you hire Ann to represent you, she will make your buying or selling experience an enjoyable, rewarding one. Her compassion, sensitivity to her clients’ needs, eye for detail, and ability to see the big picture when guiding you through a purchase or sale are unique assets that will ensure your success. A diverse and relevant background also gives Ann a distinct edge. For 30 years, she worked in fast-paced, high-pressure television and theatrical production, attaining the highest achievement – DGA membership as a Director, and as an award-winning staff and freelance writer. Her keen audio visual skills and design sense benefit sellers in marketing their properties, and are invaluable in helping buyers see the potential of space. A true renaissance woman, Ann was also an income tax professional and office manager for H&R Block, so she thoroughly understands the tax and financial implications of acquiring and selling real estate. Her superior organizational skills are further evidenced as owner of a downsizing/professional organizing business, Managed For You, which allows her to connect with everyone from millennials to boomers and seniors, whether for small space planning or assisting with major decluttering and transitioning. Ann holds an AB in American History from Simmons College, Boston, plus attended Robert Wagner Graduate School of Public Administration where she was a candidate for Doctorate. She additionally studied Film Direction at the American Film Institute in LA, and was a Stanford University post-graduate Professional Journalism Fellow. Personally, Ann is an avid if not very good golfer, and the co-founder of a nonprofit 501c3 organization offering educational guidance, tutoring and counseling for youngsters from elementary school through college admission. She sits on the board of trustees of a nonprofit educational film production corporation as well. (202) 494-6252 [email protected]