Assessed value for a home is used for property tax purposes instead of marketing purposes; which is why they can be quite different.
As mentioned below, Assessed Value is arrived using Purchase price adjusted by property 13 allowable annual increases, adjusted by taxable improvements to the property through the years.
This is why when people are selling or buyer a home, instead of using assessed value or listing price as guidance, a comparable market analysis for similar properties and working knowledge of recent sales of similar properties instead of assessed value is used to help arrive market value for a property.
Hope this helps!
It sounds as if you should be meeting with an experienced Realtor that you trust will educate you about the process and the benefits of purchasing & owning real estate.
Mary Kay & Kathy
If you want to know what market value is find a reputable, experienced pro who is familiar with the area. Although we are based in SF we work up there all the time if you want some help.
Lance King/Owner-Managing Broker
King Realty Group
Prop103 set the assessed value at approx 1% of the purchase price and basically froze the tax rate that existed at that time. Property taxes in CA are generally low for a lo of home owners.That is par of the reason we have a shortage of inventory. It is likely that the person selling has owned the property for decades. The assessed value is not indication of fair market value.