Confused when an appraisal comes in lower than the price you offered or what your agent recommends? You are not alone. In Altamonte Springs, three different “values” show up at key moments, and each one matters in a different way. In this guide, you will learn what appraised, market, and assessed values mean, how they impact pricing, offers, financing, and taxes, and what to do next as a buyer or seller. Let’s dive in.
Appraised, market, and assessed value explained
Appraised value
Appraised value is a licensed appraiser’s professional opinion of a home’s worth at a specific point in time. For purchases, your lender usually orders the appraisal to confirm the property is worth the loan amount. Appraisers follow USPAP and lending guidelines and most often use the sales comparison approach, selecting recent comparable sales and adjusting for differences in size, condition, lot, and location. Appraisals can also use cost or income approaches when appropriate.
An appraisal supports lender underwriting and can influence buyer and seller negotiations when financing is involved. Remember that it is a snapshot. In fast-moving Central Florida markets, appraisals can lag shifting buyer demand or rapid price changes.
Market value
Market value is the price a well-informed buyer and seller agree to in an open, competitive market without pressure. Agents estimate market value using a Comparative Market Analysis, which looks at recent closed sales, pending sales, active listings, list-to-sale price trends, and days on market. Actual sale prices over time reflect true market value.
Market value is dynamic. It can rise in a hot market or soften if inventory grows or demand cools. The list price is a marketing choice and may be above or below true market value depending on strategy and market conditions.
Assessed value
Assessed value is set by the Seminole County Property Appraiser to calculate property taxes. It is an administrative value that follows Florida rules and is tied to the value as of January 1 of the tax year. Lenders do not use assessed value to approve loans, but buyers should consider it when estimating total housing costs.
Florida offers a homestead exemption for primary residences, which reduces taxable value. The Save Our Homes cap limits annual increases in assessed value for homesteaded properties to the lower of 3 percent or the Consumer Price Index. Over time, this can create a big gap between assessed value and current market value. Florida also allows portability, which lets you transfer some of that tax benefit to a new homestead when you move.
How these values affect your move in Altamonte Springs
When appraisal is lower than your contract price
Lenders base your loan on the lesser of the appraised value or the purchase price, subject to loan-to-value rules. If the appraisal comes in low, you have options:
- Bring additional cash to cover the gap between the contract price and appraised value.
- Renegotiate with the seller to reduce the price or add concessions.
- Use an appraisal contingency to cancel if your contract includes this protection.
- Waive the appraisal contingency or accept the risk if you have a large down payment and understand your exposure.
Appraisals are typically ordered after you go under contract. If you believe the value is off, your agent can ask the lender to reconsider by submitting additional comparable sales or context. In some cases, the lender may order a desk review or a second appraisal, depending on program rules.
Pricing strategy for sellers
Your list price should aim at current market value, not assessed value. In rising markets, it is common for list prices to be above assessed values. In slower periods, pricing closer to anticipated appraised value can reduce the risk of financing issues.
Work with your agent to focus on the most relevant comps: similar size, beds and baths, lot type, condition, and location, ideally from a recent window. Before the appraiser’s visit, prepare a packet with recent similar sales, permits, and a list of upgrades to support the value. If an appraisal comes in low, be ready to negotiate or consider a buyer covering part of the gap.
Buyer strategy in competitive conditions
Ask for a thorough CMA with recent solds, pending sales, and active inventory so you know where value stands. If multiple offers are likely, discuss whether to include appraisal gap coverage, increase your down payment, or adjust contingencies. Always understand your maximum loan, how much cash you can bring if needed, and your risk tolerance.
Appraisal and inspection are separate steps. Keep your inspection contingency to protect your due diligence on condition, even if you adjust your appraisal contingency for competitiveness.
Property taxes in Seminole County: what to watch
In Altamonte Springs, assessed value drives your property tax bill, and it can differ widely from market value because of the January 1 assessment date and Save Our Homes caps for homesteaded properties. Long-term owners often have taxable values well below current market levels. That can be attractive to buyers comparing estimated taxes between homes.
If you purchase a property with a low assessed value due to homestead protections, your first full-year tax bill may rise if the home becomes your new homestead at a higher market-based starting point. Review assessed values and exemptions and factor taxes into monthly costs.
If you believe a property is over-assessed, Seminole County has an appeals process that runs through the Value Adjustment Board. Pay close attention to deadlines noted on TRIM notices. Sales that occur after January 1 may not affect assessments until the next tax year.
Practical checklists you can use
Sellers: before you list
- Align price with market value using recent comparable sales in your neighborhood and price bracket.
- Gather documentation for upgrades, permits, and improvements to share with buyers and the appraiser.
- Review your current tax bill and exemptions, and be ready to explain how assessed value differs from market value.
- Plan for appraisal scenarios. Decide in advance whether you would negotiate, accept buyer cash, or pursue reconsideration if an appraisal is low.
Buyers: before you make an offer
- Get pre-approved so you know your financing ceiling and loan-to-value limits.
- Ask for a CMA with sold, pending, and active comps to support your offer price.
- Discuss appraisal contingency options, including gap coverage or waivers, and understand the financial risks.
- Review the property’s assessed value and tax history and estimate your total monthly cost with taxes and insurance.
Real-world Altamonte Springs scenarios
Scenario 1: Appraisal trails a fast-moving market
You offer on a well-updated single-family home with multiple bids. The property goes under contract above recent comps. The appraisal comes in lower than the contract price because comparable sales have not yet caught up. You can increase your cash to bridge the gap, ask the seller to meet you in the middle, or use your appraisal contingency to pivot to another home. Your agent can submit stronger comps or additional context and request a reconsideration of value.
Scenario 2: Assessed value is far below asking price
A long-term owner has a homesteaded property with a low assessed value due to the Save Our Homes cap. The list price reflects current market value, which is much higher. As a buyer, you should not rely on the current owner’s tax bill for your future taxes. Your assessed value may reset based on your purchase and be subject to the January 1 assessment timeline.
Scenario 3: Seller sets price using assessed value
A seller anchors on the county’s assessed value for pricing. This creates a mismatch with actual market demand and recent sales data. With a proper CMA, you can price confidently at market value and prepare the right documentation for the appraisal, reducing surprises late in the process.
Key takeaways
- Market value drives negotiation and the final sale price. It changes with supply, demand, and current trends.
- Appraised value drives your lender’s decision. Your loan amount is based on the lesser of the contract price or appraisal, subject to LTV rules.
- Assessed value drives your property taxes. In Seminole County, homestead exemptions, the Save Our Homes cap, and the January 1 assessment date can create large gaps between assessed and market values.
If you want a clear plan for pricing, offers, and financing in Altamonte Springs, we are here to help. Connect with Millan Astray Realty for a personalized CMA, appraisal strategy, and tax guidance tailored to your next move. Se habla Español.
FAQs
Which value matters most when buying a home in Altamonte Springs?
- Market value guides your offer and final price, the lender uses the appraised value to set the loan amount, and the county’s assessed value determines your property taxes after closing.
What if the appraisal is lower than my Altamonte Springs contract price?
- You can bring extra cash to cover the gap, renegotiate with the seller, or cancel under an appraisal contingency if your contract allows it.
Why is Seminole County’s assessed value different from my agent’s estimate?
- Assessed value is for taxes and reflects Florida rules like the Save Our Homes cap and the January 1 date, while your agent’s estimate uses very recent sales and market conditions.
Can I challenge a low appraisal on a home in Altamonte Springs?
- Yes, through your lender you can submit additional comparables for reconsideration, and in some cases a second appraisal or a review may be possible under program rules.
How do appraisals treat unique upgrades or features?
- Appraisers adjust for material differences, but uncommon high-end upgrades may get conservative adjustments, so provide permits, detailed upgrade lists, and any comparable upgraded sales.
