Appraised Value vs. Assessed Value
Appraised value is the estimated market worth of a property as determined by a licensed appraiser for the purpose of a mortgage. Assessed value is the dollar amount assigned by the local parish or county tax authority for the purpose of calculating property taxes.
These two numbers serve very different purposes and are almost never the same. In Louisiana, assessed value is typically a fraction of market value — so your home may be appraised at $300,000 for a loan but have an assessed value significantly lower for tax purposes. Learn more about Louisiana's homestead exemption and how it affects your tax bill.
Appraised value affects your loan-to-value ratio and whether the deal moves forward. Assessed value affects your property taxes and monthly escrow payment. Confusing them can lead to misunderstanding your equity, your taxes, or both.
Why This Matters: Knowing the difference helps you understand two critical parts of homeownership — your financing and your tax obligation. Both numbers matter, but they answer different questions.
Common question
Why is my assessed value so much lower than my appraised value?
In Louisiana, assessed value is typically a percentage of fair market value — not the full amount. It is set by the local assessor for tax purposes and uses a different calculation than a mortgage appraisal.
Which value affects my mortgage?
The appraised value affects your mortgage — the lender uses it to confirm the property supports the loan amount. The assessed value affects your property taxes and monthly escrow payment.
Related Topics
Related Mortgage Terms
Confused about which value affects what? We will explain how each number works and what it means for your loan and taxes.
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