Assessed value is the value assigned to a property by a government entity, for the purpose of levying taxes. The value is typically based on the market values of surrounding structures that are of a similar type and share similar features. Assessed value is typically updated by the government once a year. When a property owner believes that an assessed value is in error, there is usually a process in place for demanding a reassessment of the property. Assessed value tends to be somewhat lower than the appraised market value of a property.