Appraisal vs. Maricopa County Assessor's Full Cash Value

Every year Maricopa County homeowners get a Property Valuation Notice from the Assessor showing two numbers: a Full Cash Value and a Limited Property Value. Many people assume one of them is what the home is worth. Sometimes it’s close; often it isn’t. Here’s how those numbers compare with an appraisal.

What the two Assessor numbers mean

• Full Cash Value (FCV): the Assessor describes it as synonymous with market value. It’s a mass-appraisal estimate for property tax purposes, and it’s the value you can appeal.
• Limited Property Value (LPV): created to limit large tax increases. Under Proposition 117 it generally rises no more than 5% a year (unless improvements are added or removed) and can’t exceed FCV. Your primary property taxes are based on it. It can’t be appealed.

Source: Maricopa County Assessor’s valuation notice FAQ.

Why an appraisal can come out differently

Mass appraisal vs. your home. The Assessor values well over a million parcels with statistical models. It doesn’t see inside your home, so updates, deferred maintenance, a converted garage or a view can be missed.

Different date. The notice values the home for an upcoming tax year, as of a date set by law that is well before you read it. In a moving market, the number can be out of date the day it arrives.

Records can be wrong. Square footage, bedrooms, pools or additions in county records are sometimes off. An appraiser measures and observes.

When the difference matters

• Selling, buying or pricing: use market evidence (closed sales), not the FCV. See pre-listing appraisals.
• An estate or a date-of-death value: the FCV is not a substitute for an appraisal as of the date of death. See date-of-death appraisals.
• Appealing your valuation: if you believe the FCV is too high, the notice explains the appeal deadline (check yours; it’s short). A residential appraisal can support an appeal. See property tax appeal appraisals.

Common questions

My FCV is lower than what homes sell for. Is that bad? Not for taxes. But don’t use it to price a sale or settle an estate.

Will appealing lower my taxes? Primary taxes are based on the LPV, which can’t exceed FCV. Whether an FCV reduction changes your bill depends on how close the two are. Ask the Assessor or a tax professional.

Can you appraise for an appeal? Yes. Tell us the tax year and the valuation date shown on your notice.

Know your home’s real market value

West Valley Appraisal Services prepares residential real estate appraisals for homeowners throughout Phoenix / Maricopa County, Arizona.

Learn about market value appraisals, see property tax appeal appraisals, or call (602) 717-8450.

Written by Jason Clow, State Certified Residential Appraiser #21559. This article is general information, not tax or legal advice.