Why the Assessed Home Value Doesn’t Match the List Price

Have you ever wondered why the assessed value of a home and its listing price often don’t match? This is something a lot of my homebuyer clients wonder about when I’m out showing homes, and it’s crucial to understand why this happens. Understanding the difference can help you make better decisions when it’s time to buy.

What does the assessed value represent? Your local government determines the assessed value of a home, usually the county assessor, and it’s used almost exclusively to calculate property taxes. To arrive at this number, assessors look at data from many homes in your area, often relying on sales that occurred months or even years earlier.

Because of that timing gap, assessed values tend to lag behind the current market. So if home prices in your neighborhood have risen quickly, the assessed value probably hasn’t caught up yet, which is why it often looks lower than what you’re seeing in listings.

What is the listing price? Unlike assessed value, a home’s listing price reflects what’s happening right now. Home sellers and their agents typically set this price based on recent comparable sales, current market demand, and the home’s condition.

In a hot market, prices can shift quickly, just like the stock market, so the listing price is your best indicator of what a home is truly worth today.

Think of it this way: the assessed value is like yesterday’s news, while the listing price is today’s headline. A home assessed two years ago won’t reflect today’s market value if housing prices have gone up since then.

What this means for you as a homebuyer. When you’re shopping for a home, focus on the listing price and recent comparable sales, not the assessed value. That tax figure won’t tell you what you’ll actually need to offer or what the home is worth in today’s market.

That said, it’s still worth talking to your real estate agent about how assessments work in your specific area. Timing, appeal processes, and local rules can all affect how closely assessed values track with market values, and knowing the nuances can give you an edge.

If you’re curious about how property assessments work in your specific community or have any other questions, don’t hesitate to reach out. You can contact me at (607) 795-2904 or vickischamel@kw.com. I enjoy digging into this information to help my buyers make informed decisions.