Is market value the same as appraised value?

These terms are often used interchangeably, but they describe different things. Understanding the distinction and how both relate to list price and assessed value gives sellers a clearer picture of the decisions ahead.

Market value

Market value is an informed estimate of what a property may reasonably command if offered for sale under normal conditions in the current market. It's based on evidence: comparable sold properties, current competition, buyer demand, and property-specific characteristics. A Realtor's CMA (Comparative Market Analysis) is the primary tool for estimating market value in a seller consultation. It's an analysis, not a guarantee.

Appraised value

Appraised value is the value conclusion a licensed appraiser determines as part of a formal appraisal assignment. Appraisals follow specific methodology and professional standards. In a transaction involving financing, the lender typically requires an appraisal, and the appraised value can affect the loan amount available to the buyer.

Market value and appraised value often align. But they're produced through different processes, by different professionals, for different purposes, and at different points in a transaction.

List price

List price is what a seller decides to ask. It should ideally reflect market evidence, but it's a strategic decision, not a valuation itself. A list price set well above market evidence may not receive strong buyer engagement; one set at or near market evidence is more likely to attract serious buyers.

Tax assessed value

Tax assessed value is determined by the local government for property tax purposes. It follows its own methodology and schedule, and it typically doesn't reflect current market conditions with precision.

Each of these four numbers describes something different. When you're preparing to sell, the most relevant conversation is about market value and how your list price relates to the evidence in the current market.