Assessed Value vs. Market Value | What is your home worth?

Your home has two kinds of value, one is what it's worth right now, and the other is a guess about how much people might pay for it in the future.

Imagine you have a lemonade stand. The market value is like how much money your friends would give you if they wanted to buy your whole lemonade business today. It depends on how many cups of lemonade you sell, how good it tastes, and what other kids are charging for their lemonade.

The assessed value, though, is more like the price your teacher guesses your lemonade stand is worth, not because she knows exactly how much friends will pay, but because she looks at things like how many cups you sold last week and compares them to other stands in town. This guess helps decide how much tax you might have to pay.

So, while market value is what people are actually willing to pay right now, assessed value is a teacher’s best guess, based on clues, of what your lemonade stand (or home) might be worth. Your home has two kinds of value, one is what it's worth right now, and the other is a guess about how much people might pay for it in the future.

Imagine you have a lemonade stand. The market value is like how much money your friends would give you if they wanted to buy your whole lemonade business today. It depends on how many cups of lemonade you sell, how good it tastes, and what other kids are charging for their lemonade.

The assessed value, though, is more like the price your teacher guesses your lemonade stand is worth, not because she knows exactly how much friends will pay, but because she looks at things like how many cups you sold last week and compares them to other stands in town. This guess helps decide how much tax you might have to pay.

So, while market value is what people are actually willing to pay right now, assessed value is a teacher’s best guess, based on clues, of what your lemonade stand (or home) might be worth.