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Define Market Value in Real Estate
Market Value:
"Market value" refers to the estimated price that a property is likely to sell for in the current real estate market, assuming that both buyers and sellers are well-informed about the property and are acting in their own best interests. It's like the "fair price" of an item, determined by what similar items are currently selling for in the same area.
Example:
For example, if a three-bedroom house in a certain neighborhood is similar in size and condition to other houses that recently sold in the area for around $300,000, then its market value would also be around $300,000.
If we add the extra information, "The most probable price a property will bring in terms of cash or its equivalent, with all parties well-informed and acting in their own best interest, under conditions requisite for a fair sale," we can say that market value is the most likely price that the property will sell for, assuming that all parties involved in the transaction are knowledgeable about the property and are acting fairly.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Market value, oh what a sight,
It's the price that's fair and just right.
For buyers and sellers, well-informed they'll be,
Acting in their own best interests, you see.
It's the most probable price a property will bring,
In terms of cash or its equivalent, cha-ching!
With conditions fair and just for all,
This price will stand, it will not fall.
So when you're selling or buying a home,
Remember market value, don't you roam!
It's the price that's right, and it's just and fair,
It's the one that all parties can happily share.