Why Is There More Than One Value for My House?
If you’ve ever seen different values attached to the same property, you’re not alone—and you’re not wrong to be confused. Homeowners are often surprised to learn that a house doesn’t have one universal value. Instead, a property can have multiple values, each depending on purpose, context, and use.
Let’s break down why that happens.
Value Depends on Why the Property Is Being Valued
In real estate, value is purpose-specific. The value used for a tax bill, a foreclosure, or a custom home build can legitimately be different—even for the exact same house.
Here are the most common reasons values vary:
1. Market Value (Traditional Appraisal)
This is what most people think of as “home value.”
Market value reflects:
What a typical buyer would likely pay
Under normal market conditions
With reasonable exposure time
Between willing, informed parties
This value is often used for:
Buying or selling a home
Refinancing
Estate planning
Divorce or legal matters
It’s based heavily on comparable sales, market trends, and property condition.
2. Foreclosure Value
Foreclosure-related values may be lower than market value because the conditions surrounding the sale are not typical.
Why?
Sales are often time-constrained
Properties may be in poor condition
Buyers perceive higher risk
Marketing exposure may be limited
Because these are not “normal” market conditions, foreclosure values are evaluated differently.
3. REO (Real Estate Owned) Value
REO properties are homes owned by a lender after foreclosure.
Their value may reflect:
Needed repairs or deferred maintenance
Limited buyer pool
Lender motivation to sell quickly
Even if two homes are identical, an REO property may sell for less than a typical owner-occupied home simply due to context and condition.
4. Custom Home Build Value
Custom homes introduce a different challenge: cost does not always equal value.
A custom build value considers:
Market reaction to unique features
Neighborhood compatibility
Buyer demand for customization
Just because a homeowner spends more to build or customize doesn’t mean the market will pay more. Appraisers must analyze how buyers actually respond to those features—not just what they cost.
5. Tax Assessed Value
Tax values are commonly misunderstood.
These values are:
Determined by local taxing authorities
Used to calculate property taxes
Often based on mass appraisal models
Updated on a schedule, not in real time
They are not intended to reflect current market value, and they often lag behind actual market conditions.
6. “As-Is” vs. “Subject To” Value
Some appraisals involve multiple value opinions based on condition.
As-Is Value: The property’s value in its current condition
Subject To Value: The value assuming repairs or improvements are completed
This is common in renovation, lending, and construction scenarios.
The Key Takeaway
A home doesn’t have one single value—it has the right value for the right purpose.
Different values don’t mean someone is wrong. They mean the property is being viewed through a different lens, with different assumptions, risks, and intended uses.
That’s why understanding why a value was developed is just as important as the number itself.
How Definitive Valuations Helps
At Definitive Valuations, our role is to:
Clearly define the purpose of the appraisal
Apply the correct valuation approach
Communicate results in a transparent, understandable way
If you’re ever unsure why a value looks the way it does, asking the right questions can make all the difference.
Give us a call at (256) 828-9275!
