Market Value Tag Archive

Jump to:

What is market value?
How is market value determined?

What is market value?

The term “market value” refers to the expected amount for which something can be sold or rented, based on conditions in the market at the time of exposure on the open market (in a “fair sale” or a “fair contract”). In real estate, of course, this refers to real property – either the sale of a building or a piece of land, or the lease of a space.

How is market value determined?

As with most things in real estate, the market value depends on several factors. The most common pair of determining factors are appraisals and comparable sales.

– A real estate appraisal is, most simply put, an opinion of value, expressed by a professional appraiser. The professional will consider several aspects of the property, such as its location, construction type, construction grade, finishes, development potential, zoning and use allowance, in order to assess what a fair market price would be. In the process of issuing a loan for the purchase of a property, the lender will assign an appraiser to evaluate the property and, on that valuation, decide a maximum loan amount.
– A real estate comparable sales study is another kind of valuation or appraisal. Instead of analysing aspects of the property which is being sold or leased, this process looks at other properties, which are similar, and what amounts these properties have leased or sold for. This process can result in either the increase of an underestimated intended asking price or the decrease of an overestimated intended asking price. Therefore, it works a fair market value gauge.

You might also be interested in:

skyscrapers extending up towards the sky

Written by

Top 100 US Property Taxes in 2017

Commercial Real Estate News, Development, Entertainment, Featured, Hospitality, Hotel, Industrial, Mixed-use, Multifamily, Office, Property Taxes, Retail| Views: 87

With the 2018 tax filing season now behind us, we decided to follow up on our previous list of top 100 property taxes in the U.S. We once again turned to public record sources,...

Read More

Written by

Which Cities Command the Highest Property Taxes for Office Buildings?

Commercial Real Estate News, Finance, Office, Property Taxes| Views: 448

  As the U.S. office market continues to thrive and investors keep pumping capital into this extremely profitable sector, there is a lot of talk regarding property taxes and...

Read More

Written by

How Much Do the Country’s Biggest Malls Pay in Property Taxes?

Commercial Real Estate News, Property Taxes, Retail| Views: 594

  As news abounds currently on the possible demise of the American retail center and the inevitable rise of online shopping, we thought it was a good time to see how the...

Read More

Written by

The Top 100 Property Taxes in the US

Commercial Real Estate News, Hospitality, Office, Property Taxes, Retail| Views: 5957

  Property owners in the U.S. shell out substantial–sometimes huge–amounts of cash on property taxes every year, and those taxes only increase as a building...

Read More