Assessed Value vs. Market Value: Understanding Your 2026 Tax Assessment Bill in Chesapeake, VA

If you own property in Chesapeake, Virginia, you’re likely to receive a notice sometime soon about your property’s assessed value. But what does that really mean for your wallet? And how does the assessed value compare to what your home actually could sell for in today’s market? Let me help clear up some confusion with a simple guide, while sharing insights specific to Chesapeake’s real estate landscape.

What Is Assessed Value and Why Does It Matter?

Your local government in Chesapeake assigns an assessed value to your property each year. Think of this as a starting point for calculating your property taxes. It’s determined by the Chesapeake Real Estate Assessors Office and reflects how much your property is believed to be worth for tax purposes.

In Chesapeake, VA, properties are assessed at 100 percent of their fair market value. That means the assessed value should ideally match what a willing buyer would pay in a free market today. But there are factors that influence why your assessed value might differ from what your property could sell for.

Understanding the Difference: Assessed Value versus Market Value

Here’s where a lot of property owners get confused. The market value is the price you could expect if you put your home on the market today. That’s what a buyer would pay in an open market scenario.

The assessed value is an estimate used specifically for tax purposes. It’s influenced not only by current market conditions but also by local assessment practices, statutes, and sometimes, historical data.

In Chesapeake, VA, the assessment process aims to be fair and uniform, but disparities can occur. For example, if the market in Chesapeake is hot—with home prices rising quickly—your assessed value may lag behind recent sale prices, especially if assessments are done annually or biennially.

How Are Assessed Values Determined?

Chesapeake’s appraisal process considers recent sales, current market trends, and property characteristics. The goal is to evaluate each property at roughly the same level of market value as of January 1 before the assessment year.

If property values have increased significantly in Chesapeake over the past year, your assessed value may be adjusted upwards. Conversely, if the market has softened or there are unique property issues, the assessed value might be lower than recent sales suggest.

Why It’s Important to Know the Difference

Understanding your assessed versus market value impacts your property taxes and can influence your decisions if you're considering selling or appealing your assessment.

If your assessed value is significantly higher than the market value, you might be paying more in taxes than necessary. On the other hand, undervaluing your property could mean you’re missing out on potential exemptions or tax savings.

How to Navigate Your 2026 Tax Assessment in Chesapeake

Here’s some actionable advice:

Review Your Assessment Carefully
Chesapeake mails assessments typically around April each year. Look at the valuation assigned to your property and compare it to current market prices in your neighborhood. For example, homes in Western Branch or Great Bridge recently sold between $350,000 and $450,000, but assessment values might be slightly different due to timing or appraisal methods.

Compare with Recent Sales
Use local real estate data to see how your assessed value stacks up. Websites like Zillow or Chesapeake’s property records can give you an idea of a current market price.

Understand the Appeal Process
If you believe your assessed value is too high, Chesapeake allows appeals. Gather recent comparable sales and any evidence showing your property is worth less. I’ve helped clients with similar appeals, targeting accurate and recent data to make compelling cases.

Stay Informed on Local Trends
Chesapeake's real estate market has been relatively stable, but with a tendency for values to fluctuate with regional economic conditions. In 2023 and 2024, the market has seen steady growth in many neighborhoods, making it a good time to review your assessment.

Local Market Insights for Chesapeake

In Chesapeake, VA, the real estate market remains competitive yet accessible. The median sales price in 2023 hovered around $330,000, reflecting a healthy increase from previous years. Homes in established neighborhoods like Indian River and South Chesapeake are appreciated for their price stability and desirability.

Because assessments are based on market conditions as of January 1 of the assessment year, recent sales data suggests your property could now be worth more than past assessments. It’s always wise to compare assessment notices with current market trends in your specific Chesapeake neighborhood.

External Resources to Help You

For a more detailed understanding, check out the real estate tax assessment guide published by the Texas Comptroller and other state-specific resources, which explain the valuation process broadly. Additionally, you can review the Virginia Assessment/Sales Ratio Study for 2021, which provides insights into how assessments in the state align with actual sale prices.

Learn more about your assessment process and how to evaluate your property's worth at the official Chesapeake county website or local appraisal districts. If you're considering appealing your assessment or just want a clear picture of your property's value, consulting with a local expert is always a smart step.

Final Thoughts

Understanding the difference between assessed and market value can save you money and help you make more informed decisions. Monitoring market trends, reviewing your assessments, and knowing your rights to appeal are vital parts of managing your property taxes effectively.

If you have questions about your Chesapeake property, I am here to help. Reach out to David Boord, a local Realtor with a deep understanding of the Chesapeake real estate landscape. Whether you’re evaluating your tax assessment or planning your next move, I will guide you through the process.

Contact me today at 757-926-9171 or via email at [email protected]. Visit my website at https://boordrealty.com for more insights. Let’s keep your property investment clear, fair, and financially rewarding.