Lots of people ponder the question “What is my home worth?”

Well, it really depends on who you’re asking. Are you asking an appraiser for the appraisal value, the tax office for the tax assessed value, or a Realtor for the market value? Surprisingly, they all mean different things. Let’s take a look.

Appraised Value
The appraised value is the assessed value of a property by a qualified licensed appraiser. An appraisal is part of the mortgage process. The lending company hires an appraiser to go out, look at and value the property. They want to make sure that the amount they are lending on the property is equal to or less than the appraisal value. On a side note, lenders will not loan more than the appraised value of the property.

Tax Assessment Value
This is often called tax appraisal value as well. The County Tax Appraisal Office is the one that handles these, but let’s be clear, this is different than an appraiser’s appraisal. Tax assessed value is the value the county has given to your property that helps determine the amount of tax you will pay on your property. These assessments are not a good indication of the true value of your home. Texas is a non-disclosure state. That means that the final sold prices of properties are not disclosed publicly. Tax assessed values can vary from neighbor to neighbor for a variety of reasons. This value is not a good number to base a sales price on as a buyer, or a seller. If you feel that your tax assessed value is higher than what your property is worth, you can protest your taxes with the county tax office.

Market Value
This is where I come in! market value is based on current market trends and the actual value a buyer will be willing to pay for your home. Think of it this way, an appraisal is very numbers and statistic-based, but market value is part statistics and part real life! Realtors determine market value by performing a CMA (Competitive Market Analysis) by using information and knowledge they have based on the neighborhood, recent sales, recent listings that didn’t sell, market trends, the year the house was built, layout, condition, updates and finishes, number of bedrooms and bathrooms, acreage, square footage and any other perks of your home. MV is the amount your house should sell for, and a buyer is willing to pay, in today’s market.