What Is Assessed Value in Real Estate?

🏠 What Does Assessed Value Mean?

Assessed value is determined by your local tax assessor and used to calculate annual property taxes. It represents a percentage of your home’s estimated market value, adjusted for exemptions and local assessment ratios.

For example, if your home’s market value is $300,000 and your county assesses at 80%, the assessed value would be $240,000. Your property tax bill is then based on that amount.

📊 How Assessed Value Is Calculated

• Local assessors evaluate recent sales, neighborhood trends, and property characteristics.
• Assessment ratios (often 70–100%) are applied to estimated market value.
• Adjustments are made for exemptions such as homestead or senior discounts.
• Each municipality uses its own tax rate (millage rate) to compute your final bill.

Unlike a professional appraisal, the assessed value is primarily for tax purposes, not for determining sale price or financing.

📉 Assessed Value vs. Appraised Value vs. Market Value

It’s easy to confuse these three terms, but each serves a distinct role in real estate:

• Assessed Value: Determined by the local assessor’s office to calculate property taxes.
• Appraised Value: Estimated by a licensed appraiser, typically for mortgage approval or refinancing.
• Market Value: The price a buyer is willing to pay based on current market conditions.

For a detailed comparison of how appraised and market values differ — and why assessed value is usually lower — see our guide on Market Value vs. Appraised Value.

💡 Why Assessed Value Matters to Homeowners

Understanding your property’s assessed value helps you monitor tax changes and identify over-assessments. Homeowners can often appeal their assessed value if they believe it’s inaccurate — especially if nearby properties are taxed lower for similar market values.

Knowing the difference between assessed, appraised, and market value can also help when setting your asking price or evaluating offers through Brokerless.

Know Your Home’s True Value Before You List

Understanding your property’s assessed value is just one part of pricing your home accurately. List FSBO through Brokerless and reach qualified buyers on Realtor.com, Zillow, and the MLS.