As a Realtor in The Woodlands TX I get asked many questions regarding a Home's Value.  When I meet people, they are at various stages of fact finding and often go to the County Appraisal District Website to get their answers.

STOP! Don't go look there yet.  I am going to explain why it is NOT the place to start.

The County Appraisal Districts simply give the home a value based on a Drive By.  Actually, If a County Appraiser asked to see inside your home-you have EVERY right to say no.  They simply base the value on the approximate square footage of the home and area sales which I have often found to be incorrect. 

Typically, in Harris and Montgomery Counties the County Appraised Value of a home is MUCH less than a BANK Appraisal.  I have seen them be off as much as over $100,000.  Heck, I wouldn't complain.  The rate of square footage being incorrect with the County Site is also higher than to be expected.

Now, the Bank Appraisal.  This one is much more extensive.  The appraiser will come out and get the Accurate square footage of the property, take into consideration any upgrades and updates, location, the list is long.  When it comes to getting a Home Equity Loan or Mortgage the Appraiser uses recent sales (usually atleast 3) within the EXACT area of the house.  If it is in a neighborhood, it is usually within the same section, built around the same time, and comparable square footage.  They will also take in to consideration the condition of the home.

Where does the Appraiser get the recent sold data here?

If you guessed the MLS, that's right! 

So, next time you need to know an estimated value on a home for Real Estate purposes, don't go to the Appraisal District Website for value.  Just go there for estimated taxes.  The values between the two appraisers have different purposes.

Just give your neighborhood Realtor a call and they would be more than happy to gather the SOLD data for you. 

For information regarding taxes in Harris County or Montgomery County please feel free to use these links.