Assessed value or appraised value. What's the difference? Why does it matter?

It definitely matters. And the problem is that many people get the two confused.

Here's the breakdown.

An assessment is the value placed on a property by your city or town government.
That value is used to determine only the property tax.

An appraisal is the value determined by an appraiser in order to sell your home.

So why do the 2 values end up being different?

An assessment is performed by a city or town over a 4-12 month period by a team of qualified assistants after
viewing properties and interviewing owners. They combine the values of all the homes in a city or town
to calculate the tax rate. They may recalculate the rate each year. But they don't necessarily do an
assessment each year because it's too expensive.

An appraisal, however is based on current market values. An appraiser will use recently sold prices of similar
comparable properties to determine the current market value. An appraisal takes a snapshot in time of your home's value,
an is only valid for 90 days because the market keeps changing.

To recap:

An assessment is for your taxes.

An appraisal is the current market value of your home.

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