Assessment

An assessment is an official valuation of a property's worth, typically conducted by a government-appointed assessor to determine the taxable value of real estate. Unlike an appraisal, which reflects market value for lending or sale purposes, an assessment is primarily used to calculate property tax obligations.

In real estate transactions, assessments appear on tax records and influence how buyers, sellers and lenders evaluate a property's financial profile. While assessed value and market value often differ, a significant gap between the two can prompt questions during underwriting or due diligence.

For loan originators and home equity professionals, understanding assessed value helps contextualize a property's tax burden and flag potential discrepancies with appraised value. Homebuyers and sellers should note that assessed value alone does not determine listing price or loan eligibility, but it remains a key data point throughout any transaction.