What’s the Difference Between Assessed Value and Appraised Value?

“Assessed value” and “appraised value” often get tossed around like they mean the same thing—but they serve completely different purposes.
Understanding the difference can save you a lot of confusion (and some frustration) once you start buying, selling, or paying property taxes in Lubbock County.

Here’s the breakdown:

1. Appraised Value — For Your Lender
The appraised value is what a licensed appraiser determines your home is worth in the current market. This number is used by your lender to make sure the home’s purchase price aligns with comparable sales.

Appraisals are typically ordered during the loan process—right after your offer is accepted. The appraiser inspects the property, reviews recent neighborhood sales, and adjusts for factors like size, upgrades, and condition.

In short, the appraised value protects the lender (and you) from overpaying. It reflects market reality—what buyers are willing to pay today.

2. Assessed Value — For Your Taxes
The assessed value is what the Lubbock Central Appraisal District (LCAD) assigns for tax purposes. It’s recalculated annually and determines how much you owe in property taxes.

While it’s based on market trends, it doesn’t always match current market value. In fact, assessed values often lag behind real-time prices.

That’s why your tax statement might show a number much lower—or occasionally higher—than what your home could actually sell for.

3. Why the Difference Matters
When buying a home, your lender cares about the appraised value.
When paying your annual property taxes, the county cares about the assessed value.

If your assessed value seems too high, you can protest it each spring through LCAD. I often help clients pull comparable sales and market data to support those appeals—it’s one of the easiest ways to keep your annual costs fair.

4. Quick Example:
A Lubbock home sells for $325,000.

• The appraiser values it at $325,000 (loan approved).

• The county’s assessed value might still be $295,000—used only to calculate property taxes.

So remember: one influences your mortgage, the other your tax bill.

When you know the difference, you can stop stressing over which number is “right.” They’re both right—just for different reasons.

— Insights from Tess Hernandez, Realtor | Reside Real Estate