Market Value
The most probable price a property would bring in an arm's-length sale between a willing buyer and willing seller.
Market value is what an appraiser is ultimately trying to determine. It assumes neither party is under duress, both have reasonable knowledge of the market, and a reasonable marketing period has been allowed. It's not necessarily the same as the listing price, the contract price, or the assessed value for tax purposes.
Market value moves with conditions. Interest rates, inventory levels, school district ratings, neighborhood comparable activity, and broader economic factors all influence what a home would bring in a given month. Two appraisals six months apart on the same property can legitimately differ if the market has shifted.
Property tax assessed value is governed by state and local rules and rarely matches market value precisely, sometimes it lags, sometimes it overshoots. A property's assessed value tells you about the tax bill, not what someone would pay to buy.
Related terms
Other terms you'll see alongside Market Value
An independent valuation of a property by a licensed appraiser, used to confirm that the home is worth what the buyer agreed to pay.
Recent sales of similar nearby properties, used to support an appraiser's opinion of value.
An annual tax levied by local governments on real estate, based on the property's assessed value.
The loan amount expressed as a percentage of the property's appraised value or purchase price (whichever is lower).
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