Every year, homeowners receive their property assessment, and one of the most common questions is:

“Is this what my home is worth?”

The short answer is no — not necessarily.

Your assessed value and your market value are not the same thing.

An assessed value is used for property tax purposes. It is based on a valuation date and uses broad data to estimate the value of properties across an area.

Market value is what a buyer is willing to pay for your home in the current market.

Those two numbers can be close, but they can also be very different.

There are several reasons for that.

First, assessments are based on a specific point in time. By the time you receive the assessment, the market may have changed. Buyer demand, interest rates, inventory, and local conditions may all be different.

Second, assessments may not fully capture the details of your specific home.

They may not reflect recent renovations, condition, layout, views, suite potential, updates, curb appeal, privacy, floor plan, or how buyers feel about the property in person.

Two homes on the same street may have similar assessments but sell for very different prices because of condition, layout, lot usability, exposure, or updates.

Third, market value is influenced by competition.

If there are very few similar homes for sale, buyers may be willing to pay more. If there are many competing homes, buyers may have more choices and negotiate more strongly.

That is why your neighbour’s assessment, your assessment, and your actual market value can all be different.

For sellers, this is important because pricing based only on assessed value can lead to mistakes.

If the assessment is too low, you could underprice. If it is too high, you could overprice and sit on the market.

For buyers, it is also important. A home listed above assessed value is not automatically overpriced. A home listed below assessed value is not automatically a deal.

You need to look at recent comparable sales, current competition, property condition, location, and buyer demand.

The assessment is one piece of information.

It is not the full story.

If you want to understand what your home may actually sell for, you need a current market evaluation based on real-time conditions and the details that make your property unique.