Appraised value is the fair market value of a property, while assessed value is the value used for property taxes. Appraisals are typically used by lenders, while assessments are used by local governments. 

Appraised value 

• Determined by a professional appraiser
• Used by mortgage lenders when considering a mortgage application
• Represents the fair market value of a property
• Based on factors such as the property's cost, income, and fair market value compared to similar assets

Assessed value 

• Determined by a local tax assessor 
• Used by local governments to calculate property taxes 
• Based on a drive-by evaluation by a municipal assessor 
• Takes into account the value of comparable properties in the area 
• In many cases, calculated as a percentage of the fair market value of the property 

  
  

An increase in the appraised value does not necessarily lead to an increase in property taxes.