Did you know your home can have four different values at once…and all four may be correct? A market-value estimate, an appraisal, a tax assessment, and a homeowners insurance figure can differ because each answers a different question.

• Market value is the price a home would most likely bring in an open, competitive market. It reflects comparable sales, competing homes, location, condition, improvements, taxes, and buyer demand. When selling, it matters most. The asking price is a strategy, not a guarantee, and should position the home for the strongest response among similar properties.
• Appraised value is an independent opinion prepared by a licensed or certified real estate appraiser as of a specific date. A lender may order one for a purchase or refinance, while a homeowner may commission one for estate or other purposes. Appraisers analyze the property, comparable sales, and market data.
• Assessed value is used in calculating property taxes, but it is not necessarily the same as market value and should not be used alone to price a home. In New York, properties within a municipality are generally assessed at a uniform percentage of estimated market value.
• Replacement cost is the estimated cost to repair or rebuild the home after a covered loss. When a policy provides replacement-cost coverage, Replacement cost may exceed market value because rebuilding costs are driven by labor and materials, not buyer demand.

Which value matters?

• Selling: Market value
• Financing or refinancing, when required: Appraised value
• Reviewing property taxes: Assessed value
• Reviewing homeowners insurance: Replacement cost

Because each number serves a different purpose, seek guidance from the appropriate professional: a real estate professional for market-value positioning, a licensed or certified appraiser for appraisal questions, the municipal assessor or a property-tax professional for assessments, and a licensed insurance professional for coverage.

Before relying on any number, ask who created it, why, when, and what evidence supports it.

Have a real estate question you’d like answered? Send it my way for a future Just Ask Jen column. Whether buying, selling, or seeking guidance, my door is always open.