Miami Property Valuation: The Three Numbers and Why They Rarely Match

When a buyer asks what a Miami property is worth, and a seller asks the same question, they are usually talking about different numbers. The county has its figure. The lender has its own. And the market has a third. Understanding which number applies to which decision is the first step in reading any Miami transaction clearly.

Published October 2, 2026

Property valuation in Miami produces three distinct numbers, and they are rarely the same. Buyers and sellers who treat them as interchangeable tend to reach the wrong conclusions at the wrong moments — overestimating tax exposure after a sale, misreading a low appraisal, or not understanding why the county's figure bears little resemblance to what a unit actually trades for. This is a quick guide to what each number represents and where it shows up in a transaction.

Number one: the just value from Miami-Dade Property Appraiser

The Miami-Dade Property Appraiser (MDPA) establishes a just value for every property in the county as of January 1 each year. Just value is the appraiser's estimate of the property's fair market value — what it would sell for between a willing buyer and seller in an arm's-length transaction. The MDPA uses sales data, physical characteristics, and neighborhood comparables to calculate this figure.

Just value is publicly available on the MDPA website (miamidade.gov/pa) and updated annually. It is the starting point for the county's tax calculation, but it is not the figure used to calculate what most homeowners actually pay in taxes — that comes from the assessed value, which is subject to caps and exemptions.

Number two: the assessed value and the Save Our Homes cap

The assessed value is derived from just value, but two different rules apply depending on whether the property carries a homestead exemption.

For properties with a homestead exemption — meaning the owner lives there as their primary residence and has filed for the exemption with the county — Florida's Save Our Homes amendment caps annual increases in assessed value at three percent or the Consumer Price Index increase, whichever is lower. In years when Miami's just values rise sharply, a long-term homesteaded property's assessed value may be significantly below its just value. The difference is called the SOH benefit or the SOH cap savings, and it is specific to that owner and that homestead.

For non-homestead properties — investment condos, second homes, rental units — a different cap applies: annual increases in assessed value are capped at ten percent of the prior year's assessed value. This cap provides some protection against rapid market appreciation but does not accumulate the same way the SOH benefit does for homesteaded owners.

The critical point for buyers: the SOH benefit does not transfer with the property. When a homesteaded property sells, the assessed value resets to just value as of January 1 of the year following the sale. A buyer who sees that the current owner pays taxes on an assessed value of $400,000 for a unit that trades at $900,000 should budget based on taxes calculated at or near just value — not the seller's current assessed value. The first full tax bill after closing will reflect that reset.

Number three: the lender appraisal

When a buyer finances a purchase, the lender orders an independent appraisal from a licensed appraiser to determine the value the lender will use to calculate the loan. The appraiser's opinion of value is based on recent comparable sales, the physical condition of the property, and market conditions at the time of the appraisal.

The lender will generally not lend more than the appraised value allows given the agreed loan-to-value ratio. If a property is under contract at $850,000 and the appraisal comes in at $800,000, the lender calculates the permitted loan amount based on $800,000. The buyer either covers the gap in cash, renegotiates the contract price, or walks away if the contract has an appraisal contingency.

In competitive Miami markets — particularly for well-located units in buildings with limited inventory — appraisals sometimes lag behind active bidding because appraisers use closed sales as comparables, and closed sales may reflect conditions from ninety to one hundred twenty days earlier. An appraisal gap is not necessarily a sign that the agreed price is wrong; it may reflect that the appraisal methodology captures where the market was, not where it is today.

The fourth figure: what the market actually pays

None of the three numbers above is the same as the actual sale price. The county's just value is an estimate based on mass appraisal methodology. The lender's appraisal is one licensed professional's opinion based on comparable sales. The actual sale price is what a specific buyer agreed to pay for a specific unit on a specific date, reflecting condition, view, floor, timing, competition from other buyers, and negotiation.

A comparative market analysis (CMA) from a listing agent draws on all of these inputs — recent closed sales, active competition, days on market, and the specific features of the unit — to identify a pricing range where a seller can attract qualified buyers and close within a reasonable timeframe. The CMA is not a certified appraisal and carries no legal weight with a lender, but for sellers deciding on an initial list price and buyers deciding on an offer, it is the most useful synthesis of current market conditions.

What drives value in Miami specifically

Several factors carry more weight in Miami's condo market than in many other markets. Direct water views — bay-facing versus city-facing versus partial — affect per-square-foot pricing significantly, sometimes by twenty to thirty percent within the same building. Floor matters: in a building without mechanical floor layouts that interrupt views, higher floors typically command premiums. Parking in buildings where spaces are deeded separately, rather than assigned, is a real asset that shows up in both appraisals and buyer competition.

Building financials carry increasing weight since SB 4-D. A buyer who reviews the reserve study and sees a fully funded SIRS reserve is looking at a different risk profile than a buyer in a building with a significant funding shortfall. Lenders, increasingly, are asking these questions before committing to loans in older buildings — which means a building with a funding gap may have a narrower pool of qualified buyers and a suppressed appraised value relative to comparable buildings in stronger financial condition.

Frequently asked questions about Miami property valuation

Why does the county's just value seem so different from what homes are actually selling for?

The MDPA values hundreds of thousands of properties annually using a mass-appraisal methodology applied to January 1 market conditions. In a fast-moving market, just value may lag behind actual transaction prices. In a cooling market, it may appear elevated. The county's figure is updated annually and is the best available public estimate, but it is not the same as an arm's-length transaction price in current market conditions.

How much will my tax bill increase when I buy a Miami property?

It depends on the property's current assessed value and just value. If the seller had a long-standing homestead exemption, the assessed value may be well below just value, and your tax bill will reset to just value as of January 1 of the year after closing. The practical way to estimate your first-year tax bill is to take the just value from the MDPA website, apply the current Miami-Dade millage rate for the relevant taxing districts, and account for any exemptions you will qualify for (homestead exemption requires Florida residency and primary-residence status, filed by March 1 of the applicable year).

What happens if the appraisal comes in below the contract price?

If the contract includes an appraisal contingency — which is standard in most financed transactions — the buyer has the right to renegotiate the price or terminate the contract and recover the earnest deposit. If there is no appraisal contingency, or if the buyer wants to proceed despite the gap, the buyer must cover the difference in cash. Sellers facing a low appraisal can challenge it by providing the appraiser with comparable sales the appraiser may not have considered, though the appraiser is not required to revise the conclusion.

Does the county's value affect what I can sell for?

The county's just value has no binding effect on what a property sells for. Buyers and sellers negotiate price based on market conditions, not the MDPA's assessment. The assessed value does affect what buyers will pay in ongoing property taxes, which can influence buyer calculations in higher-price ranges, but the just value itself is not a ceiling or floor on transaction prices.

Stefania Riverin, Licensed Real Estate Sales Associate · FL SL3620067 · Brokered by NB Elite Realty · 1101 Brickell Ave, Miami, FL 33131 · Equal Housing Opportunity. General information about property valuation concepts; not tax or legal advice. Property tax questions should be directed to the Miami-Dade Property Appraiser's office or a licensed Florida CPA.