WHAT IS MARKET VALUE?
Market value is the most probable price that a property would sell for on the open market as of a given date. An assessor reviews and measures the real estate market to establish typical market rates. Your property assessment is based on the real estate conditions as of July 1 of the previous year and the physical characteristics and condition of your property as of December 31 of the previous year.
Florida Law requires that the just value of all property be determined each year. The Supreme Court of Florida has declared ”just value” to be legally synonymous to ”full cash value” and ”fair market value.” The fair market value of your property is the amount for which it could sell on the open market. The property appraiser analyzes these market transactions annually to determine fair market value as of January 1.
Market value refers to the price that a seller of real property can expect to receive from a buyer in a fair and open negotiation. Typically, the market value of a home or other real property, such as land, is determined by professional appraisers or real estate agents and is based on a variety of specific key factors. Especially in tumultuous markets, market value can flucutate dramatically, and while your real estate professional may determine one “market value” for your house, the reality in the end is that the true market value is determined by what a buyer is willing to pay for it. Knowing the market value of your property is important if you are selling your home because it helps determine the asking price. Many sellers who do not understand market value will price their home too high or too low, both of which could have negative financial results. Similarly, many homeowners fall victim to predatory lending when a lender convinces them to borrow more money than their home is actu
Market value is defined as the amount a typical, well-informed purchaser would be willing to pay for a property. The seller and buyer must be unrelated, the seller must be willing, but not under pressure to sell, and the buyer must be willing, but not under any obligation to buy. The property must be on the market for a reasonable length of time, the payment must be in cash or its equivalent, and the financing must be typical for that type of property. If all of these conditions are present, this would be a market value, arm’s-length sale.
