Property values can raise a lot of questions. Whether you’re a homeowner, potential buyer, or just keeping an eye on your investment, it’s important to understand how property is valued for tax purposes—and why the numbers you see might not always match up with other valuations.
In this post, we’ll break down the property valuation process, explain the difference between market value and assessed value, and clarify why these numbers don’t always align.
What Is Market Value?
Market value, also known as “true value”, is the price a property would likely sell for in today’s real estate market. It represents the amount a willing buyer and a willing seller would agree upon under normal conditions.
This is the value you’re most likely familiar with—it’s the one you hear about when a property is listed for sale or when a private appraiser evaluates your home for refinancing or sale.
What Is Assessed Value?
The assessed value is determined by the Assessor’s Office and is used solely for property tax purposes. According to Washington state law, all properties must be assessed at 100% of their true and fair value in money.
So if both values are supposed to reflect the same “true value,” why do they often differ?
Timing Is Everything: The Assessor’s Valuation Timeline
The key difference comes down to timing. Property values for tax purposes must be established as of a specific date: January 1st of each year. To determine accurate values as of that date, our office analyzes real estate sales from the previous year.
Once values are established, property owners are notified of any changes so they have time to appeal before values are finalized for the following tax year.
Here’s how the timeline works:
- January 1 – Assessment date
- Throughout the year – Sales from the prior year are analyzed
- Valuation notices sent – Property owners can review and appeal
- February 14 – Property tax statements mailed
- April 30 – First half of property taxes due
By the time you pay your taxes on April 30, the value your taxes are based on could be up to 16 months old, using sales data from as far back as 28 months ago.
An Example:
Let’s say you pay your property taxes on April 30 and also get a private appraisal around the same time for a refinance. The fee appraiser doing the private evaluation will be looking at sales from the last 3 to 6 months—a much more current window compared to the county’s data.
This difference in sales data timeframes is why your appraised market value may not match the assessed value.
- In a rising market, market value can be higher than assessed value.
- In a declining market, assessed value might be higher than market value.
The assessed value always lags behind current market conditions.
Still Have Questions?
The Assessor’s office link is: https://www.kitsap.gov/assessor
If you’re unsure about your property’s most recent assessment, or if you just want to better understand how your home was valued, we encourage you to contact the Kitsap County Assessor’s Office at 360.337.7160.
