What Is the Difference Between Assessed Value and Appraised Value?

Here is the money problem, Patriot Nation: two different numbers get attached to your home, and confusing them can cost you real cash. One decides what you pay in property taxes every single year. The other decides how much house the lender will finance. Same house, two numbers, and they can sit tens of thousands of dollars apart. Let's put both on the table so you know which one a decision runs on.

Ask Patrick which value matters for your purchase.

Assessed value: the county's number for your tax bill

What it is: Assessed value is what your county appraisal district assigns for property tax purposes. In San Antonio and Bexar County, the Bexar Appraisal District reassesses each January 1 and sets your assessed value for the following tax year.

What it costs you: Texas has no state property tax: cities, counties, school districts, and special districts set rates against your assessed value. On a $300,000 home in San Antonio, property taxes typically run roughly 1.8% to 2.5% of assessed value, which is about $5,400 to $7,500 a year. An owner-occupied homestead exemption removes part of the value from school district taxation, and homeowners 65 or older or with a qualifying disability get an additional exemption plus a school tax ceiling.

The real-world move: If you believe your assessment is too high, Texas law gives you a right to protest with your appraisal district using evidence of comparable sales. That protest is where homeowners save real money year after year, and I file it with clients who bought from me every spring.

Appraised value: the lender's number for your loan

What it is: Appraised value is what a licensed appraiser concludes the home is worth on the day of valuation. A lender orders an independent appraisal when you buy or refinance, and underwriters use that number, not the assessed value, to calculate your loan-to-value ratio and approve your mortgage amount.

What it costs you: Your loan amount hinges on the appraised value. Offer $300,000 and the appraisal comes in at $280,000, the lender lends on $280,000, and the $20,000 difference has to come from somewhere, or the deal has to change. That gap is real cash on top of your down payment and closing costs.

The real-world catch: The appraisal protects the lender, but it sets your down payment and your cash to close. That is why a comp-supported offer rarely meets a low appraisal: the offer was built from the same evidence the appraiser uses.

Why the two numbers drift apart

Assessed value tracks the taxing calendar and can lag the market, while an appraisal reflects the day-of valuation. A home bought at the top of a hot Hill Country market can appraise near contract price while its assessed value catches up slowly, or the reverse in a cooling market. Neither number is wrong; they just answer different questions.

Never assume one fixes the other. Check both before you price an offer, plan a refinance, or budget taxes, because the two can sit tens of thousands of dollars apart and only one of them shows up on your loan paperwork.

Which number should you watch?

Buyers should watch the appraised value, because it is the number that sets your loan and can trigger an appraisal-gap conversation in a multiple-offer situation. Homeowners should watch the assessed value and their exemption paperwork, because that is the number behind the tax bill.

I check both on every transaction in Bexar and surrounding counties: the appraisal before we close, the assessment after we close. One protects the deal, the other protects the budget, and you deserve to know both.

Patrick's advice: know which number a decision runs on

Do not confuse them. Your property tax bill is based on assessed value. Your mortgage is based on appraised value. They can sit tens of thousands of dollars apart, and understanding both helps you plan and potentially reduce taxes.

When you buy with me, we watch the appraisal so your loan and your cash to close stay honest. After you close, we keep the assessment honest too, with the homestead exemption filed and the protest filed when the evidence supports it. That is the full picture, and it is how you keep more of your money. Make it a great one.