What is the difference between an Appraisal, Evaluation, Assessment, and Market Value?

Hand-drawn illustration of rising home values

Appraisal: Only a licensed appraiser can produce an appraisal report. Lenders like banks who loan money based on the value of property will only use the opinion of an appraiser to determine value. Appraisers are rarely REALTORS® and will not be soliciting for a listing or commission. Appraisers are paid a flat fee for their professional and reliable report.

Evaluation: Sometimes called a CMA (comparative market analysis), REALTORS® can access active and sold data to show you what the market looks like in your local area and help you to choose an asking price. REALTORS® want your business and can sometimes exaggerate the value of a property to get a listing.

Assessment: The city that levies a property tax on your property uses a formula to determine ‘value’ for a property and to set a tax rate for the upcoming year. The process is normally done in advance of the tax year where the assessment is applied, and the assessed value doesn’t change all year. Tax assessment value is the most unreliable point of data and should not be used to determine market value for your home.

Market Value: Market value can only be determined by the market (informed buyers). Only a buyer will determine what they will pay for a property at any given moment and what someone will pay is what market value is currently.

Related Insights

What is an iBuyer?

What is an iBuyer?

What is an iBuyer? An iBuyer is a real estate company that utilizes technology to buy and sell homes quickly….

Learn More
List of All Neighbourhoods in Calgary

List of All Neighbourhoods in Calgary

This list is accurate as of January 1st, 2023. For an updated list of neighbourhoods in Calgary visit Sweetly’s Calgary…

Learn More
What happens if you can’t pay your mortgage?

What happens if you can’t pay your mortgage?

Whether you have lost your job, gone for a vacation, or are struggling with severe health conditions, there could be…

Learn More
Making Better Animations Using Scroll Magic

Making Better Animations Using Scroll Magic

Things always appear more exciting and impressive when they are moving and interactive. Just as pictures were turned into movies…

Learn More