by Amy Lillard
In the midst of one of the most uncertain real estate markets in history, it's more important than ever to be informed. In a continuing series, we take a look at some of the most pressing questions about mortgages, refinancing, home equity, and other real estate options available to you.
(9/13/2012) Everyone involved in real estate, whether it's sellers, buyers, or simply people interested in the dynamics of the market, must contend with market value.
Generally, market value is the price at which a home in its current condition will sell within 30 to 90 days. Market value has been a hot topic in recent years as home prices have slid to record lows. It's an indicator of the general health of the real estate market, as owners have lost millions in equity and the buyers have had less buying power.
When considering market value, it's necessary to unpack the definition. The market value of a specific home is determined in part by the location of the home. Prices vary significantly across the country, but also across regions and from neighborhood to neighborhood within a city or town.
Market value is also determined by condition of the home. Condition dictates how much buyers will be interested in the property, affecting the amount of time on the market. Increased time on the market means reduced selling price.
Ultimately, to get an accurate read on the market value of a property, an independent appraisal is a good bet. For a few hundred dollars, an appraiser can examine a home and relevant market data to determine current value.
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