Tax-Assessed Value vs. Market Value: What’s the Difference?

Home prices aren’t set in stone. A property’s value can shift depending on who’s doing the calculation—and why. That’s why you’ll often hear two different numbers thrown around during a home sale: assessed value and market value.So what’s the difference between tax-assessed value versus market value? And how should buyers and sellers use each when negotiating a home sale?Let's break it down.What is market value?The technical definition of market value is "the most probable price that a given property will bring in an open market transaction," says Casey Fleming, a former real estate appraiser and author of “The Loan Guide: How To Get the Best Possible Mortgage.”Put simply, “It’s the price that a buyer is willing to pay for a home, and that a seller is willing to accept.”Real estate agents are trained to pinpoint a home's value in the real estate market, which is done by looking at a variety of factors, including the following:External characteristics like curb appeal, exterior condition of the home, lot size, home style, and availability of public utilities.Internal characteristics like the size and number of rooms, construction and appliance quality and condition, heating systems,...