Home value means different things to different people, depending on how they are involved in a real estate transaction. The home Buyer may have stars in their eyes, seeing "the castle of their dreams" when they look at the property they are purchasing.

Assessed Value

The tax assessor will see a very different picture. The assessor wants to create assessed value equality among the town or city's citizens in order to fairly assess taxes and share the tax burden in an equitable manner amongst all property owners. Towns periodically undertake re-evaluations to update their market assessed value for all properties. While based upon historical sales data, it does not always represent current market data. It is a useful tool in comparing the values of similar real estate properties.

Appraisal Value

Appraisers must protect the interest of the lender and therefore must be more conservative in the appraisal value they place on a real estate property. The appraisal value is more typically based upon historic sales data and may or may not agree with market value.

Market Value

Market value is what a ready, willing, and able home buyer pays to a ready, willing and able seller in a transaction with no undue influences. It is a negotiated value which changes relative to market conditions, supply of homes, demand, and seasonality in some cases. Market value is created by the home buyer and seller. Too often, buyers and sellers have a notion some other factor determines market value, when in reality; those two parties determine market value.  

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