Many homeowners assume their tax assessed value is the same as their home’s appraised value in the current market, but that’s not necessarily true.
Misunderstanding these terms can affect your property taxes, home sale, refinance, or even legal settlements.
In this blog, we’ll break down the difference between assessed value and appraised value in simple, practical terms. Let’s get started.
What is Assessed Value?
Assessed value is the number your local government assigns to your property for tax purposes.
In most cases, this process occurs at the county level and utilizes mass appraisal models rather than detailed, in-person inspections.
Assessors rely on assessment ratios (sometimes referred to as millage rate), public sales data, and limited drive-by evaluations to estimate a property’s value.
TAG Tip: Be sure to check your county’s website for updates on upcoming property revaluations. For example, Iredell County reassesses property values every four years. Their most recent county-wide revaluation occurred in 2023, with the next one scheduled for 2027 by the county.
What is Appraised Value?
Appraised value is a professional opinion of your property’s market value from a licensed appraiser.
People rely on appraisals for a variety of scenarios, including:
- Buying or selling a home
- Refinancing
- Estate settlements
- Divorce or separation of assets
So, why are appraisals used for these major financial and legal purposes, and not assessed value?
Because the appraisal process is far more detailed and evidence-based.
It includes:
- An on-site inspection of the property
- A review of recent comparable sales
- Consideration of local market trends and sales data
Unlike county assessments, appraisals take a property-specific approach that reflects your home’s actual market position.
It’s important to note that courts and lenders widely accept appraisals as the only valid valuation method in real-world legal decisions.
TAG Tip: In high-demand areas like Mooresville or near Lake Norman, appraised values tend to shift faster than assessed ones. These markets are rising in value more quickly than smaller surrounding towns, such as Troutman or Harmony. Don’t assume the number on your tax bill represents what your home is truly worth in today’s market.
The Key Difference of Assessed Value vs. Appraised Value
So, what really separates an assessor’s number from an appraiser’s opinion of value?
Let’s break down the key differences side by side:
Feature
Assessed Value
Appraised Value
Purpose
Taxation
Real estate transactions
Determined By
County assessor
Licensed appraiser
Frequency
Every 4-8 years (county-specific)
As needed (ex., refinancing, PMI removal)
Method
Mass appraisal methods
On-site inspection + market analysis
Impact
Property tax
Market price, loans, settlements
Common Misconceptions About Assessments vs. Appraisals
Even experienced homeowners often mix up these terms. Here are a few myths we often hear, and the truth behind them.
- Myth: ‘A low tax value means my home isn’t worth much.’
- Reality: Assessed value only affects your property taxes, not your current market value. Your home’s appraised value could be significantly higher.
- Myth: ‘Appraisals and assessments are basically the same thing.’
- Reality: Assessments are mass-produced for tax purposes. Appraisals are custom evaluations performed by licensed professionals using current market data.
- Myth: ‘If my home was recently reassessed, I don’t need an appraisal.’
- Reality: Assessments may utilize outdated data or average values for the general neighborhood. Appraisals reflect your specific property’s current market conditions.
TAG Tip: Our TAG appraisers in places like Statesville often use real sales data from the past 90 days. In contrast, county assessors might rely on older data, sometimes 12-18 months or more, which can create a gap between assessed and appraised values.
Knowing the Difference Makes All the Difference
Your assessed value determines your property taxes.
Your appraised value determines your next move.
When it comes to decisions that matter, whether you’re selling, refinancing, or resolving a legal or financial matter, only a professional appraisal reflects your home’s true worth.
That’s where Triangle Appraisal Group comes in.
Our team combines local market knowledge with trusted expertise to deliver accurate, defensible appraisals across North and South Carolina.
For clarity that counts, trust the local experts who know your market best- TAG us in!
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