What does market value exactly mean on a house?

Question

I want to know what my home is worth. And to get an idea of what it can sell for.

But a website told me what my house is on market value. Is this anywhere close? Becuase to me the price they gave me on market value seems so off.

Answer 1

You are getting good answers. I agree with them about several things but want to put my two cents in also.

Since a "market value" is what a willing buyer and willing seller will agree to at a given time.....then you need to remember that this should never be given by a computer, and should never be a figure that someone came up without walking thru the house, and should never be an average of several sales.

When you have an agent come out have them show you print outs of sales and discuss with them which sales your home is most similar to (and why). You should be able to understand the value very well after the discussion- it is not brain surgery.

Web sites often use sales I would never suggest. They also cannot walk thru your house and see what great thing you have done to the kitchen or landscape that everyone will love. (Or how your ceiling is caving in).

Answer 2

The definition of market value is the most probable price that a knowledgeable seller and a knowledgeable buyer would agree upon for a specific property. Most of the web sites out there are not very accurate, as markets appreciate and depreciate. Your best bet, and cheapest option is to get a Brokers Price Opinion. Most of the time this is considered the top of the market for your particular property. If you want to pay more, then get an appraisal done, which should be the most likely price that your house would sell for.
Also, you need to be aware that most of the markets in the country are in a great deal of flux at the moment, so there will probably be some discrepancy between an appraisal and a BOP.

Answer 3

Fair market value is what a willing buyer and a willing seller would agree to. Tax appraisers start with the same idea, but omit the value of some thins that are usually transferred with the house but are not permanent improvements to the property, such as curtains and the stove.

The best a web site can do is do a correlational study comparing some facts about your house with some facts in a database. They may be looking at the average price of a house with the same number of bedrooms as yours in an area as large as the whole zip code and may use data that is one or two years old. The web site can not assign value for things like the view or the condition of the house or the quality of the interior decor.

If you want a realistic price, call three realtors and average their free estimates, or hire an independent appraiser. Don't deal with a realtor who won't take the time to give you a free assessment. Expect to pay an appraiser a couple hundred dollars, but they can save you thousands by helping you get the right price.

Answer 4

Kelly- Simply put its the value that buyer and seller would be willing to pay for your home on the open market.

I agree that sites such as zillow etc may be only an estimate.

The previous writer made a great suggestion with an appraisal or a market anaylis by a Broker. In the business its called a CMA.

An apprsial may be in the $350 range +-

In interviewing a brokerage it may be best to interview at least 3 and see what they say as to the market value.

Please remember its always best to look at actuall sold properties vs listed properties.

Good Luck

Answer 5

Market value is the term used to describe an appraisal based on an estimate of what a buyer would pay a seller for any piece of property. Basically, it is the price the market will bring for your home.

I'm not sure which website you used, but the best way to find a true market value is to speak to a real estate agent in your area or to have the home appraised.

Answer 6

Market value is what your house is worth in the market now. Because we are in a slump your house will reflect that. Your house is worth more to you because of the emotional attachment and the fact you may have made changes or upgrades. The market doesn't bear those changes so well.

If you were to price your house at what you think it should be in this market, chances are it wouldn't sell.

If you want to be in the ballpark, you may want to take what you think your price should be and the price that the website stated as the market value and chose somewhere inbetween. Ideally, in the middle of those two figures not closer to either your figure or the other figure. But somewhere in the middle is probably the best price to be.

Answer 7

True market value is the fair price that a willing and able buyer will pay for your home. Of course whether the site gives an accurate portrayal of market value is another question. Still the most accurate way to find your market value is to consult a REALTOR and have them do a Comparative Market Analysis on your home (aka a CMA).

Most REALTORS will do this for free as a way to gain your business & possibly list your home. Good REALTORS keep up-to-the-minute knowledge on current market conditions in the areas they work. I hope this helps.

Answer 8

Look in your county records to see how much people have paid for homes that are very much like yours in the past few months. (Try to look at the homes in your development that have the same square footage, bedrooms, bathrooms, yard size etc.) The sales prices averaged should give you a pretty accurate dollar amount that someone should be willing to pay for your house.

Answer 9

you need to have the home appraised by a reputible real estate broker in your local area/