In real estate, market value refers to the estimated price at which a property would likely sell in the current market, considering factors such as its location, size, condition, and recent sales of comparable properties. Market value is an essential concept in property transactions, as it helps buyers and sellers determine a fair price for the property. Real estate professionals, including appraisers and agents, use market analyses and appraisal techniques to establish a property’s market value, which may fluctuate based on changes in the economy, supply and demand, and other factors.
Related terms
- Appraisal
- Comparative market analysis (CMA)
- Fair market value
- Home equity
- Listing price
- Property valuation
- Real estate market
- Sales comparison approach
References
- Investopedia: “Market Value”
- National Association of Realtors: “Understanding Market Value”
- The Balance: “How to Determine the Market Value of a Home”
Leave a Reply
You must be logged in to post a comment.