What's the Difference Between Assessed, Appraised, and Market Value?

Short Answer

Assessed value is set by the county for property-tax purposes. Appraised value is a professional's opinion of value, often used by lenders. Market value is what a willing buyer and seller would likely agree to in the current market. These three numbers are often different, and none of them automatically equals the correct asking price for your home.

Three Different Values

Homeowners are often confused because their home can have three different "values" at the same time. They measure different things.

Assessed Value

Assessed value is determined by the county assessor for property-tax purposes. It is based on public records and mass-appraisal methods, not on an individual inspection of your home. In Arizona, the Arizona Department of Revenue oversees property tax administration, and county assessors determine assessed values.

Assessed value is generally not a reliable indicator of market value. It may be higher or lower than what your home would sell for.

Appraised Value

An appraised value is a licensed appraiser's professional opinion of a property's value, usually based on an inspection and comparable sales. Lenders typically require an appraisal during a financed purchase to confirm the property supports the loan amount.

An appraisal is a point-in-time professional opinion. It may differ from what a specific buyer is willing to pay.

Market Value

Market value reflects what a willing, informed buyer and seller would likely agree to in the current market—essentially, what your home is likely to sell for. It is influenced by comparable sales, condition, location, supply and demand, and buyer behavior.

Market value is not a single published number. It is estimated through comps and observed through buyer response. See How Do I Find Comparable Sales (Comps) for My Arizona Home? and How Much Is My Arizona Home Worth?.

Why They Differ

• Assessed value uses mass-appraisal and public records, updated on a tax cycle.
• Appraised value is a professional opinion for a specific purpose at a specific time.
• Market value reflects current buyer behavior and may shift with conditions.

Which One Should You Use for Pricing?

None of these automatically equals the correct asking price. Asking price is a strategy based on market value, your goals, and how you want to position the property. See How Do I Determine the Asking Price When Selling My Own Home?.

Arizona-Specific Considerations

Arizona property tax administration is overseen by the Arizona Department of Revenue, with county assessors determining assessed values. Online estimates like Zestimates are separate from all three—see How Accurate Are Zillow Zestimates in Arizona?.

Dwealling's Role

Dwealling helps you organize pricing research and observe buyer response to your asking price, providing real market feedback. Dwealling does not perform appraisals or tax assessments. Pricing is $199 setup plus $99 per month.

Arizona Context

Arizona property tax administration is overseen by the Arizona Department of Revenue, with county assessors determining assessed values. Assessed value is not a reliable indicator of market value. Online estimates are separate from assessed, appraised, and market value.

I've had sellers tell me their home is 'worth' the assessed value, or the Zestimate, or a number from a refinance appraisal years ago. Those are all different things, and none of them is automatically what your home will sell for today. Market value is what matters when you're selling—and the most honest measure of market value is how qualified buyers actually respond to your price. That's the feedback I encourage sellers to watch.

— Ryan Michael, Arizona Real Estate Professional

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