Appraised value is an estimate of what your property is worth. The term is used in two different contexts that often cause confusion:
Government appraisal: Your county appraisal district's estimate of your property's value for tax purposes. This is what appears on your tax notice and determines your property tax bill. In Texas, this is often called "appraised value" or "assessed value" interchangeably.
Private appraisal: An independent valuation by a licensed appraiser, typically ordered for mortgage lending, refinancing, or estate purposes. This reflects market value as of a specific date.
These two values don't always match—and when your government appraised value exceeds actual market value, you may be overpaying on taxes.
Understanding the difference between government and private appraisals helps you identify savings opportunities:
If your county appraised value is higher than recent private appraisals: You have strong evidence for a tax appeal.
If comparable homes sold for less than your appraised value: The county may have overestimated your worth.
If your home has condition issues the county doesn't know about: Their appraisal likely overstates your value.
County appraisals are educated guesses made from a distance. A successful appeal shows them information they missed.
Sarah is refinancing her mortgage and buying a new property:
Private appraisal (for lender): $425,000
A licensed appraiser inspected her home, analyzed comparable sales, and determined this market value for lending purposes.
County appraised value (for taxes): $460,000
The appraisal district's mass appraisal system set this value without inspecting Sarah's home.
The $35,000 gap means Sarah is being taxed on more than her home is worth. The private appraisal gives her strong evidence for a property tax protest.
In Texas, they're often the same—both refer to the value set by the appraisal district. In some states, assessed value is a percentage of appraised value. The terminology varies, but both affect your tax bill.
For tax purposes, your county appraisal district (Texas) or County Assessor (California) determines the value. For lending or sales purposes, an independent licensed appraiser provides the valuation.
Yes. A private appraisal from a licensed appraiser can be strong evidence in a property tax appeal, especially if it shows a lower value than the county's appraisal. However, it's not required—comparable sales data often works just as well.