Season 3, Episode 8: From the ValuVault – Why Tax Assessments ≠ Market Value

Tax assessments are revenue tools, not price gauges

• Purpose – Counties set assessed value to calculate annual taxes, nothing more.
• Lag time – Many jurisdictions update on a 1- to 3-year cycle, so values trail fast-moving markets.
• Broad-brush formula – Mass-appraisal models ignore renovation quality, curb appeal, view premiums, etc.

Real-world gap

• 2025 sale prices are up ≈ 3.8 % YoY. Assessments in several metros trail by 10-20 %.
• Example: Chicago bungalow
  • Assessed value → $300 K (2023 roll)
  • Current comp-supported value → ≈ $360 K
  • Result: great for your tax bill… terrible anchor for list-or-offer strategy.

What buyers & mortgage pros should do instead

• Pull six-month comps from MLS / Redfin / Zillow before you write the contract.
• Order a BPO or full appraisal when upgrades (kitchens, baths, ADUs) change the picture.
• Coach borrowers—lenders use appraisal value, never the county card, when setting LTV.

🔗 Episode audio: ValuVault – Why Tax Assessments Do Not Equal Market Value

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