Questions
What is the relationship between the assessed value of a property and an appraisal?

An appraisal is the value placed on a property by a certified appraiser. When a lender is involved in a purchase they require an appraisal on the property as an integral part of loan underwriting. The sales comparison approach is the most utilized in residential purchases. Generally speaking, the appraised value of the property suggests a fair purchase at that amount.

On the other hand, a tax assessment on a property is usually not a good indicator of the fair market value of the property. It may help you to compare the relative value of properties next to each other or on the same street but the only certain conclusion you can draw is what your taxes will be on the property; not how much you should pay to purchase that property.

Whether you’re looking at an appraisal or a tax assessment, usually the more recent the report, the more accurate it is. Remember, assessment has only to do with the taxes and appraisal has to do with the comparative market value of the property. A property is demonstrated to be worth what a ready, willing, and able buyer will pay without being under duress.