Market value
The most likely price a home would sell for in an arm's-length deal, with a willing buyer and seller and reasonable time on the market. The number appraisals try to estimate.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
Market value is the price a willing buyer and a willing seller would agree on with neither under pressure. It is what the appraisal estimates and what a good list price aims near, and it moves with the market.
Part 2 of 4
A simple example
Three comps put your home's market value near $305,000. The market slows over the summer, and the same comps would now support about $298,000.
| The number | What it is |
|---|---|
| Market value, about $305,000 | What the evidence says the home would sell for now |
| List price, $309,900 | What you ask, with room to negotiate |
| Sale price, $302,000 | What a buyer actually paid |
Market value is an estimate. The sale price is the one fact.
Part 3 of 4
What people get wrong
That market value is what you paid plus what you spent. It is what buyers will pay now, and improvements rarely return their whole cost.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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