Appraised Value vs Market Value vs Assessed Value: What Is the Real Difference in Florida?
3 min read · Last updated 2026-06-05 · Reviewed by Camilo Palacio, Licensed Florida Real Estate Professional (License #3280644, REALTOR®)
Market value is what a buyer will actually pay for a home in the current market, appraised value is a licensed appraiser's professional opinion of that value, usually done for a lender, and assessed value is the number the county property appraiser uses to calculate property taxes, which in Florida is often held well below market value by the homestead exemption and Save Our Homes assessment cap. These three numbers can differ by a lot on the same house at the same time. Cash Flow Deals prices offers off real market value and comparable sales, not the county's assessed value, which is usually the lowest of the three.
| Value Type | Who Determines It | What It's Used For |
|---|---|---|
| Market value | Buyers, sellers, and agents via comparable sales | What a home would actually sell for right now |
| Appraised value | Licensed appraiser | Confirms the home supports the loan amount for a lender |
| Assessed value | County property appraiser's office | Calculates the annual property tax bill |
Market Value: What a Real Buyer Would Actually Pay
Market value is the price a willing buyer would actually pay a willing seller in the current market, with neither side under pressure to act. It is not a fixed number stamped anywhere. It is estimated using recent comparable sales nearby, current buyer demand, days on market, and the condition of the home.
This is the number that moves the most and the fastest, because it reacts to real conditions on the ground. Realtor.com reported a 53-day national median days-on-market figure in its June 2026 housing report, and that kind of pace directly affects market value, since homes sitting longer often see price cuts while homes moving fast can hold or push value up.
Market value is also the number most sellers actually care about, because it is the closest estimate of what they can realistically expect to net from a sale. Real estate agents estimate it through a comparative market analysis, appraisers estimate a version of it through formal appraisal, and buyers form their own opinion of it before ever making an offer. All three are trying to answer the same question from a slightly different angle, which is part of why the numbers rarely match exactly.
Appraised Value: A Lender's Professional Opinion
Appraised value is a licensed appraiser's formal, documented opinion of a home's value, and it exists mainly to protect a lender's loan. When a buyer finances a purchase with a mortgage, the lender orders an appraisal to confirm the home is worth at least what the buyer is agreeing to pay, since the home is the collateral for the loan.
The appraiser uses comparable recent sales, adjusts for differences in size, condition, and features, and arrives at a number. If that number comes in lower than the contract price, it creates what is commonly called an appraisal gap, and the buyer, seller, or both have to figure out how to close it, through a price reduction, a bigger down payment, or the buyer walking away if an appraisal contingency allows it.
This is why appraised value and market value are related but not identical. Market value reflects what buyers are actually paying right now. Appraised value reflects one professional's documented, defensible opinion, built to satisfy a lender's underwriting standards, which can lag behind a fast-moving market or be more conservative by design.
Assessed Value: Why It Is Usually the Lowest Number, Especially in Florida
Assessed value is a different animal entirely. It is the number a county property appraiser's office assigns to a home for property tax purposes, and in Florida, it is frequently far below the home's actual market value. Florida's homestead exemption reduces the taxable value of a primary residence, and the Save Our Homes provision caps how much the assessed value of a homestead property can increase each year, generally around 3 percent, no matter how fast market value is climbing.
That means a home that has appreciated significantly over the years can carry an assessed value that looks nothing like what it would actually sell for. Sellers sometimes see the low assessed value on their tax bill and mistakenly assume it reflects what their home is worth, which can lead to serious sticker shock when they get a real market value opinion.
Cash Flow Deals does not use assessed value to build an offer. It looks at real comparable sales and current market conditions, the same inputs behind true market value, then locks in a net number for the seller before repairs get scoped. Understanding which of these three values is which is one of the fastest ways for a seller to avoid being surprised, in either direction, by any number they see during a sale.
Common questions
What is the difference between appraised value and market value?
Market value is what buyers are actually paying right now, based on comparable sales and demand. Appraised value is a licensed appraiser's formal opinion, usually done to satisfy a lender before a mortgage is approved.
Why is my Florida home's assessed value so much lower than what it could sell for?
Florida's homestead exemption and Save Our Homes cap limit how much a primary residence's assessed value can rise each year, often around 3 percent, so it can fall well behind actual market value over time.
What happens if the appraisal comes in lower than the sale price?
That is called an appraisal gap. The buyer and seller have to renegotiate the price, the buyer covers the difference in cash, or the buyer cancels if the contract includes an appraisal contingency.
Does Cash Flow Deals use the county's assessed value to make an offer?
No. Offers are built off real market value and comparable sales, not the county's assessed value, which is usually the lowest of the three numbers on a Florida home.
Can assessed value ever be higher than market value?
It is uncommon but possible, especially right after a market downturn or if a home lost its homestead exemption. In most cases in Florida, assessed value stays well below market value.