If you're checking out homes recently listed for sale, you might also happen to look up a property in the city or county tax records -- and then you might be surprised to see that the tax assessment is quite a bit different from the list price.

In most cases, the tax assessment is lower than the asking price. 

So why the difference?

A few key reasons...

Timing - Tax assessments are often based on sales data from a year or more ago. In a changing market, home values may have gone up (or down) since then.

Limited Info - Assessments don't always reflect upgrades, renovations, or the condition of the home. A house with a new kitchen or finished basement might be worth far more than the tax record suggests.

So, what's the key thing to remember?

Tax assessments help determine how much a homeowner pays in real estate taxes -- but they aren't a reliable way to understand a home's current market value. If we are trying to determine a home's value in the current market, our best bet is to look at recent comparable sales.