Merv has an outstanding post this afternoon. Read the whole thing (no longer available).
– TAX ASSESSMENTS HAVE NOTHING TO DO WITH THE MARKET VALUE OF A HOME
– APPRAISALS HAVE NOTHING TO DO WITH THE MARKET VALUE OF A HOME
– CMA’S HAVE NOTHING TO DO WITH THE MARKET VALUE OF A HOME
– ZILLOW ZESTIMATES HAVE NOTHING TO DO WITH THE MARKET VALUE OF A HOME
– YOUR NEIGHBOR’S OPINION HAS NOTHING DO TO DO WITH THE MARKET VALUE OF A HOME
– WHAT YOUR NEIGHBOR’S SOLD FOR 6 MONTHS AGO HAS NOTHING TO DO WITH THE MARKET VALUE OF A HOME
– ALL OF THE ABOVE HAVE SOMETHING TO DO WITH THE MARKET VALUE OF A HOME (Bolding Mine)
Market value: The price the property will bring when offered for sale by a seller who desires but is not obliged to sell and bought by a buyer under no necessity of purchasing. Clarke Associates v. Arlington County, 235 Va. 624, 369 S.E.2d 414 (1988).
In other words, market value is what a ready, willing and able buyer will pay for a property.
I would add two things to Merv’s excellent post – Assessments do not determine the market value of a home, but they do impact the market value of a home, as they influence a seller’s motivation. I wouldn’t say that the above have “nothing” to do with the valuation, but that each is a component of the actual valuation. Put together, all of the above can give direction, often an accurate direction, of what market value may be. Appraisals have little to do with market value, but they are of paramount importance to whether that ready, willing (often eager) and able buyer is able to get a loan.
Heck, if someone wants to pay $465k for this 1365 square foot townhome (no longer available), more power to them. If they so choose, that would be market value.
If you have questions about how one arrives at a house’s value, read this article.
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I have been been representing buyers and sellers in Charlottesville, Albemarle, and Central Virginia since 2001. Get local insight born of experience.
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