What Is Appraised Value?

The estimated market value of a property as determined by the county assessor or an independent appraiser.

Detailed Explanation

Appraised value is the county's estimate of what your property is worth on the open market. In most states, the appraisal is performed by the county assessor's office using mass appraisal methods. In Texas, each county has a Central Appraisal District (CAD) that appraises every property annually. The term "appraised value" can be confusing because it is also used for private appraisals ordered by mortgage lenders or buyers. These are two very different things. A county appraisal is a mass estimate performed remotely using computer models, sales data, and property records. A private appraisal involves an appraiser physically visiting the property, inspecting its condition, and comparing it to recent sales individually. The county's appraised value may be higher or lower than what a private appraiser would conclude. If you believe the county's appraised value is too high, that is the basis for a property tax appeal. Many homeowners hire independent appraisers to get a professional opinion of their property's market value, then use that as evidence in their appeal. However, an independent appraisal is not required. Comparable sales data is usually sufficient. The relationship between "appraised value" and "assessed value" also varies more than people expect. In Texas, the two terms mean the same number. In a lot of other states, they are deliberately different figures: the appraised value is the county's market-value estimate, and the assessed value is what you get after applying the assessment ratio, and sometimes an additional equalization step, to that appraisal.

How It Varies by State

TexasEquals market value

Central Appraisal Districts (CADs) appraise annually. Appraised value = assessed value in Texas. 10% annual cap on homesteaded property increases.

New YorkVaries by municipality

Some towns appraise at full market value; others use a fraction. The "level of assessment" varies by jurisdiction.

CaliforniaBase year value + max 2%/yr

Under Prop 13, the appraised value is set at purchase and grows slowly. The county does not reappraise to current market value unless the property is sold or new construction occurs.

FloridaJust Value (market value)

County property appraiser determines "just value" each year. Homesteaded properties benefit from a 3% annual cap on assessment increases.

IllinoisAppraised value != assessed value

The county appraises the property at market value, then Cook County applies a 10% assessment level (25% for commercial) plus a state equalization factor, while the rest of Illinois applies 33.33% directly, before arriving at the assessed value used to calculate the tax bill.

Common Misconceptions

Myth:The county's appraised value is the same as a bank appraisal

Reality:County mass appraisals use statistical models for thousands of properties at once. Bank appraisals are individual inspections by licensed appraisers. The two numbers often differ significantly.

Myth:You need to hire an appraiser to appeal

Reality:While an independent appraisal can strengthen your case, most successful appeals rely on comparable sales evidence. You do not need to pay $300 to $500 for a private appraisal unless your case is complex.

Myth:If I improve my home, the county automatically knows

Reality:Counties rely on building permits and periodic reviews to detect improvements. Unpermitted work may not be reflected in the appraisal, and permitted work may be overvalued or added incorrectly.

Myth:"Appraised value" and "assessed value" always mean the same number

Reality:Only in some states, like Texas, are they identical by definition. In most other states they are two different numbers in the same calculation: the appraised value is the market-value estimate, and the assessed value is what results after the assessment ratio (and in places like Cook County, an equalization factor) is applied to it.

Impact on Your Tax Bill

In Texas, if the CAD appraises your home at $450,000 but comparable sales suggest it is worth $400,000, you are overpaying on the full $50,000 difference. At a combined tax rate of 2.2%, that overappraisal costs $1,100 per year. Filing a protest to correct the value to $400,000 would save $1,100 annually. In a ratio state, the same $50,000 appraisal error would flow through the assessment ratio before hitting your tax bill, so the dollar impact is smaller in raw terms but proportionally identical.

Frequently Asked Questions

Is appraised value the same as assessed value?

It depends on the state. In Texas, they are the same number by definition. In most other states, appraised value is the county's market-value estimate, and assessed value is what results after applying the state or county's assessment ratio (and in some places, an equalization factor) to that appraisal.

Does the county's appraised value match what a bank appraisal would say?

Not necessarily. County appraisals are mass-produced statistical estimates covering thousands of properties at once. Bank appraisals involve an individual inspection. The two numbers can differ meaningfully, in either direction.

Do I need my own appraisal to challenge the county's appraised value?

No, for most residential appeals, comparable sales data is sufficient evidence. An independent appraisal can help in complex or high-value cases, but it is not a requirement.

What if the county has the wrong details about my home, like square footage?

Data errors are a common driver of an inflated appraised value. Pointing out and correcting factual errors, using your county's property record card as a reference, can be one of the fastest paths to a reduction.

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