Question about Assessed Value vs. Market Value...

[Mark K.]

Hello, I am a newbie and about two months in.  I've been reading everything I can get my hands on and feel it's time to start analyzing deals and crunching numbers.  I figured I start at the Assessor's site which I did and now have some questions...

• If you look at the two properties below, one an apt building and the second a SFH, why are the Assessed and Market values so far apart for the apt building?
• Using the Assessor's site in NYC, I was able to find Market Value for my building and any condo's.  For Montgomery County, MD, I did not see Market Value so I just used Zillow.  Does Market Value on Assessor's website just depend on your location?  If not, where should I go for Market Value?
• When you are doing your due diligence, at what stage in the process do you look up Assessed/Market Value?
• For Assessed Value, is there anything I would use this for other than when factoring property taxes?
• For Market Value, is this just nothing more than a projection/gauge of the property's value on the market?  What would I actually use this for when analyzing a deal other than a benchmark for comps?

I looked up the apt building I live in in NYC (Manhattan - East Village).  Below are the values, I don't understand how they can be so far apart.  

• Assessed Value (Period begin 1/1/15): $652K
• Market Value (Tax Year 14/15): $1.44MM

Additionally, I also looked at my childhood home in Montgomery County, MD

• Assessed Value (2014): $402K
• Market Value (from Zillow): $451K

Thank you in advance for your help!

[Karen Margrave]

@Mark K. Welcome to BP! I have been in this business for over 30 years and I can tell you that I have not once looked up the assessed value of a property. I don't know about in your area, but here in California, the assessed value and market value have very little to do with one another. 

What you want to know is what the true market value of a property is, and that can only be had by finding comps, or cost to build then adding in land, improvements, etc. (which is not for the inexperienced) 

Good luck in your ventures, and I'll see you around the forums.