Assessed value is similar to market value, however, it is typically a lower amount and is used differently than market value.
Professional property assessors (employed by a municipality) place an official value on a piece of real estate. This value is used to levy property taxes. In other words, this is the official value given to a home for tax reporting purposes.
Assessors analyze similar properties and what they have sold for, factor in the value of home improvements, any income the property is generating (e.g. rental income), and other variables.