Two terms that often come up when buying or selling property are assessed value and market value. While these terms may seem similar, they actually represent two different values that can affect the pricing of a property. Understanding the difference between these two values can help you make informed decisions when it comes to buying or selling a property

Assessed Value

Assessed value is a value that is assigned to a property by the local government for taxation purposes. This value is determined by the assessor’s office and is used to determine the amount of property taxes that the owner will be required to pay in a certain town or city. The assessed value is typically based on the physical characteristics of the property, such as its size, age, and condition, as well as the current market conditions in the area. Click here for CT Property tax rates.

Keep in mind that the assessed value does not determine the listing price or market value of the property. In some cases, the assessed value may be lower than the market value, especially if the property has not been recently assessed or if the market has significantly appreciated since the last assessment

Market Value

Market value, on the other hand, is the value that a property would sell for in the current market conditions. This value is determined by a variety of factors, such as the property’s location, condition, amenities, and recent sale prices of comparable properties in the area. The market value is typically determined by a professional appraiser who specializes in determining property values.

Over the last several years we have seen market value drastically fluctuate, due to the unique changes in market conditions. For example, due to the current real estate market conditions in New England, the market value of properties has been on a steady rise. When comparing average prices from 2022 to 2021, Massachusetts prices were up by 8.7%, New Hampshire was up by 14.9%, Connecticut was up by 5.9%, and South Florida was up by 7.5%. Based on the changes we’ve seen in the market, it is crucial that you hire a reputable real estate agent to accurately determine the listing price for your home in the current market.

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Which Value to Use

In most real estate transactions, the market value is typically the value that is used to determine the asking price. However, the assessed value can also be used as a starting point, especially if the market conditions are stable and the property has been recently assessed.

It’s important to note that buyers and sellers should not rely solely on the assessed value or market value when making decisions about a property. Another popular tool buyers and sellers often used to find out the value of their home is the Zestimate®. Similar to the assessed and market values, the Zestimate is a great starting point, but shouldn’t be the sole determining factor for pricing the home. Other factors, such as the property’s location, condition, and amenities, as well as the buyer’s or seller’s personal situation, should also be taken into consideration.


When it comes to buying or selling a property, it’s important to work with a knowledgeable real estate agent who is familiar with the local market conditions. They can provide valuable insight into factors such as local zoning laws, school district ratings, and nearby amenities, which can all affect the market value of a property.

Overall, understanding the difference between assessed value and market value is essential for anyone who is looking to buy or sell a property. By understanding these two values, you can make informed decisions and ensure that you are getting the best possible price for your property.

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