From The Allison Ziefert Real Estate Group:
Your tax assessment says one thing. An appraisal says another. And your real estate agent suggests a different price altogether. Which number should you believe?
For Maplewood and South Orange homeowners, these differences can be confusing as each valuation serves a different purpose—and may reflect a different moment in time.
Your tax assessment: A number for calculating taxes
Your municipal tax assessment is the value used to calculate your property tax bill taking into account location, lot size, square footage, condition and features. It is not necessarily what your home would sell for today but a snapshot of what your home’s value was estimated to be when the values were set in a townwide revaluation. As prices change, however, the assessment and current market value can move apart. In New Jersey, interpreting an assessment also requires understanding the town’s assessed-to-market-value ratio. You cannot simply compare the number on your tax record with a neighbor’s recent sale price and draw a conclusion. In fact, YTD homes have been selling for an average of 36% over assessed value and 34% over assessed value in South Orange.
An appraisal: An independent opinion of value
An appraisal is prepared by a licensed or certified appraiser to estimate a property’s value as of a specific date. When you buy or refinance, the lender commonly uses an appraisal to help determine whether the home’s value supports the loan.
Appraisers consider comparable sales, property characteristics, condition and other relevant factors. Appraisers only used sales data from the most recent 3-6 months thus, an appraisal from several years ago or even a year ago will no longer reflect today’s market. A purchase appraisal does not automatically match the price a buyer has agreed to pay. In today’s market many buyers are agreeing to purchase a home at the contract purchase price even if the home does not appraise for that amount.
FYI: Appraisal reports are changing
Fannie Mae and Freddie Mac are introducing a redesigned residential appraisal report, with a mandatory transition scheduled for November 2, 2026. The update modernizes and standardizes how property information is reported. The change itself does not determine whether your home is worth more or less, and it is separate from your municipal tax assessment.
An agent’s CMA: A guide to today’s market
A comparative market analysis, or CMA, helps estimate what your home could sell for under current conditions. An agent studies recent comparable sales, competing listings, pending transactions and your home’s condition, while considering local buyer demand.
In Maplewood and South Orange, that means looking beyond bedroom counts and square footage. Layout, updates, outdoor space and location can influence how buyers respond. A CMA helps shape a pricing strategy; it is not a formal appraisal or a guarantee of the final sale price.
The next time you see three different numbers attached to your home, ask: What is this valuation for, and when was it prepared? If you are considering a move, a current, locally informed market analysis is a useful place to start.
Here is our latest market report for South Orange:
Here is our latest market report for Maplewood:
Wondering what your home could sell for—and how that compares with your tax assessment or a past appraisal? Contact us at [email protected] for a complimentary market analysis. We’ll help you make sense of the numbers and plan confidently for your happy next chapter.
