Market Value
Market value is the price a property would fetch in a competitive, open market. Discover how appraisals and comparables determine market value.
Definition
Market value represents the most probable price a property would sell for in a competitive and open market, under conditions where both buyer and seller act prudently, knowledgeably, and without undue pressure. Appraisers estimate market value by analyzing recent comparable sales, current market conditions, property characteristics, and economic factors. Market value is distinct from assessed value (used for taxes) and market price (the actual sale price, which may reflect motivation or other circumstances). Understanding market value helps sellers price property realistically and buyers make informed offers.
Why It Matters
Market Valuecan affect financing, title, negotiations, or closing timelines. Sellers who understand it can set better expectations, while buyers can plan smarter offers and reduce surprises later.
Examples
Example 1: A seller clarifies market value in disclosures to prevent disputes.
Example 2: A buyer evaluates market value while comparing properties and loan options.
Example 3: Title or escrow highlights market value requirements to keep the deal on schedule.
Tips
Ask how market value applies in your deal before mutual acceptance.
Keep supporting documents organized and accessible.
Maximize market reach with a flat fee multiple listingservice.
Additional Context
Market Value is often linked to financing requirements, property valuation, title conditions, or contract negotiations. Address questions early and document agreements in writing for a smoother closing process.
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