What is “Market Value” or “Fair Market Value”?
Market Value is the price a home will command from a rational purchaser under normal conditions; the value of a home in today’s market. It is basic supply and demand economics. As home inventory on the market (supply) increases, home prices will fall if the demand is constant or declining. It is also important to note what Market Value is not. It is not the amount you paid for your home, how much you owe on your home, the great price your neighbor received for their home, or the assessed value, or even the appraised value. It can change over night when the interest rates change or when five more homes in your area come on the market at higher or lower prices.
