Quick Answer: Market Value vs Assessed Value in Texas Market value is what your home would sell for in today's market, while assessed value is what your county appraisal district says your property is worth for tax purposes.
In Texas, your assessed value directly determines your property tax bill, but it may be capped below market value thanks to the homestead exemption's 10% annual increase limit. Understanding the Three Key Property Values Texas homeowners encounter three different property values each year.
Here's what each one means: Market Value (What Your Home Could Sell For) Market value represents the price your home would likely sell for in the current real estate market. This figure changes based on: Recent comparable sales in your neighborhood Current buyer demand Interest rates and financing availability Local economic conditions Seasonal market fluctuations Real estate agents typically determine market value through a Comparative Market Analysis (CMA) using recent sales of similar homes.