The difference between assessed, appraised and market value

Real Estate Terminology

Anyone who has ever participated in the purchase or sale of real estate has heard terms like “assessed value,” “market value” and “appraised value.” To their surprise, none of these numbers corresponded with the others. The reason for these discrepancies springs from how each of these values is determined and the reasons for which they are used. Understanding these terms can make anyone more knowledgeable about the intricacies of real estate transactions and property taxes.

Assessed Value

The assessed value is typically set by an assessor who works for the county in which the property is located. Assessors evaluate a property based on numerous factors, such as how much similar properties have recently sold for and the value of improvements. They also consider how much income the owner is making from the property. Using these factors, the assessor determines the “assessed value.” This number is then multiplied by a number known as the “assessment rate.” The rate is set by the county, and it’s applied equally to all property.

For instance, the assessed value of a property may be multiplied by an assessment rate of somewhere between 80 and 90 percent. When an assessor finds that a piece of property has a value of $500,000 and is subject to an assessment rate of 85 percent, then the assessed value will be $425,000. The resultant $425,000 is then used by the local assessment agency to calculate how much is owed in property taxes. In general, properties that have a higher assessed value will be required to pay more in property taxes.

The assessed value of a property is used almost exclusively for the purposes of calculating property taxes. However, it may be mentioned when the property goes up for sale, particularly if the assessed value is quite different from the asking price.

Market Value

This number is a moving target that can change by the week or even by the day. That’s because it’s essentially the number that a buyer and seller can agree on to ensure a sale. Typically, the market value of a property is established by a real estate agent who is trained to discern how much a property is likely to sell for.

Real estate agents look at several factors to determine market value. This can include what the property is used for and its location. Structures that are used for commercial or industrial purposes may be weighed by factors like their condition, curb appeal and the fitness of the facilities for a particular use. Real estate agents similarly examine what comparable properties have recently sold for in the area. Supply and demand also affect market value. In essence, the real estate agent looks at the number of likely buyers in the area and how many other properties are suitable for the purpose that the buyer requires.

The market value forms the basis of the asking price, and it also may inform any offers made. In fact, a buyer may commission their real estate agent to come up with their own market value to help them arrive at an offer.

Appraised Value

Usually, the appraised value fluctuates far less often than the market value. That’s because the assessed value is typically determined by a professional appraiser. Appraisers frequently are hired by banks and mortgage companies to conduct a thorough review of the property in question. By looking at factors like the features and functionality of the property as well as recent sales of similar properties, this professional establishes the appraised value.

Appraisers are typically licensed or certified by a state or other agency, which means that they have specialized knowledge and training that prepares them for their work. The appraised value that they determine is used as a guideline. In most cases, a property will not be sold at a price that is greater than its appraised value. Appraisal reports also are used for insurance purposes and for figuring net worth and tax losses.

Contact the real estate experts at Waypointe Realty to learn more about the property valuation process. With professionals experienced at determining market values and comparing them to assessed and appraised values, Waypointe Realty can ensure that you always settle for the right price.

Here at Waypointe Realty, we want to provide tips for sellers ready to sell their properties. As a result of having more buyers than inventory, we are in a seller’s market. What we typically see when a seller tries to sell their home without a real estate agent, is that they overprice their home.

When you overprice your home it can become stagnant in the market and we see a huge decline in visibility of the property and offers.

We’ve encountered sellers that have chosen to sell their home For Sale By Owner and see that something is just not working. Typically, it’s the price. Continue reading “3 Tips to Help Sellers Sell Their Home”

Tips on maximizing property value in a Niche Market

Oviedo, Florida (August 4, 2017) — Waypointe Realty has made a career out of selling homes in the niche market of those with more than an acre of land. With the hot real estate market that exists in Central Florida, sales are happening relatively quickly, but there are ways to maximize your property value before the sale is final.

“We specialize in the niche market of homes with larger lot sizes,” said Jenelle Ferrer, President of Waypointe Realty. Continue reading “How to Benefit in a Hot Real Estate Market With a 1+ Acre Property”

Eight Tips to Taking Advantage of Seller’s Real Estate Market

Waypointe Realty Offers Ways to Buy a Home at a Good Value During Hot Market

Oviedo, Florida (July 5, 2017) — Noting that Central Florida real estate market continues to be hot, Waypointe Realty says there are things every buyer should do to take advantage of this cycle.

Continue reading “Eight Tips to Taking Advantage of Seller’s Real Estate Market”

Register for Florida Homestead Tax Exemption


As a Florida resident, one of our perks as homeowners is being eligible for a Homestead Exemption on your home, condominium, co-op apartment, and certain mobile home lot if it qualifies.

The Florida Constitution provides this tax-saving exemption on the first and third $25,000 of the assessed value of an owner/occupied residence.

We’ll break this down for you.

Continue reading “How do I register for Florida Homestead Tax Exemption?”

Here at Waypointe Realty we focus on helping buyers and sellers navigate through the complexities of real estate to secure value on their next real estate transaction. But many people wonder why on earth should I use a real estate company to help me buy or sell my home?

Continue reading “Why Choose a Realtor?”

Hurricane Season is Here!

June 1st is officially the beginning of hurricane season. While we have had a great decade of little to no activity, aside from Hurricane Matthew in 2016, it is always important to be prepared.

Here are 6 tips to prepare for hurricane season: Continue reading “6 Essential Tips to Prepare for Hurricane Season”

Orlando's Millennial Homeowners are Growing

Millennial’s Are Buying Homes

An increasing number of people are buying homes in Orlando, and millennial’s make up a large percentage of that group. These young professionals are determined to have the American dream. With Orlando’s climate of economic growth, great weather and affordable real estate, it’s no surprise that more young adults are choosing this area. just announced that Orlando is #3 city for millennial’s in 2017. Continue reading “Orlando’s Millennial Home Owners Are Growing”

downtown Oviedo fl and the new real estate developments around it

Sprawling Oviedo

It’s not uncommon to meet Oviedo residents that remember the downtown for what it used to look like and that’s because like now, people are finding Oviedo to be a great place to lay down roots. This recent boom in growth has caused somewhat of a problem for the original downtown Oviedo. Smashed in between 419, 434 and 426 is the original downtown Oviedo and as of the last two years, the city has been tearing down buildings and homes from the early 1900’s to make way for road expansion. If you have driven through the downtown corridor during rush or school hour you have experienced the traffic caused by the uniquely designated intersections.

Continue reading “The New Downtown Oviedo”