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Market Value vs. Assessed Value vs. Appraised Value

Susan McCallion

Hi! I’m Susan McCallion, Sanibel resident, former non-profit executive, mother of four, and Broker and Principal of McCallion & McCallion Realty...

Hi! I’m Susan McCallion, Sanibel resident, former non-profit executive, mother of four, and Broker and Principal of McCallion & McCallion Realty...

Jul 7 4 minutes read

3 Types of Home Values

In this "moments with mom," video series we dive into the three different types of home values that are commonly used in real estate. 

Click on the video below to learn more about the three types of home values, including examples from my mom's past real estate experience and my own experience.  


Market Value

Market value might be the most common term you hear used in the real estate industry, so let's start there. The market value of a property is determined by a real estate professional. It encompasses recent home sales and homes that are currently listed for sale. It also factors in home improvements (interior & exterior), knowledge of selling features like the fact that there's a walking path to the beach, the type of community amenities, and more. 

Market values are also influenced by national trends, economic swings, buyer vs seller demand, available inventory, and a number of other factors. With so many variables, it's easy to see why it takes an experienced Realtor some time and effort to provide you with a true market value for your home, as opposed to the computer-generated valuations found online. 

Assessed Value

Moving on to assessed value. This has to do with your property taxes. In Florida, your assessed value is determined by a local property appraiser for your county. They assess the value when you first purchase your home and re-assess its value every year. 

The great news for Florida residents is that we have protections in place like the Florida Homestead Exemption and the “Save Our Homes” Amendment. You can read more about these and how the assessed value determines your property tax in our blog Florida Property Taxes Explained.

Appraised Value

The appraised value of a property is determined by a property appraiser (different from the county appraiser listed above). When you apply for a mortgage on a property, your lending bank will order an appraisal using one of their partnering companies The appraiser will visit the property to determine the value and send the appraisal report to your lender. 

Sometimes the appraised value is more than the loan amount you are requesting, sometimes it is lower. This causes an "appraisal gap" which we talk more about in our blog, "What Buyers and Sellers Need To Know About the Appraisal Gap."


Questions About Values?

I'm sure you have more questions about the different types of home values used in real estate. Please don't hesitate to reach out with questions or for clarification. We're also happy to provide an in-depth market value for your SWFL property! Call us at 239-472-1950 or email [email protected].

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