What is the significance of determining market value?

Determining market value is crucial as it helps to identify the potential selling price of a property. Market value represents the estimated amount for which a property should exchange on the open market between a willing buyer and a willing seller. This assessment takes into account factors such as comparable sales, market trends, property condition, and location.

Estimating the market value is fundamental for various stakeholders, including sellers looking to price their property competitively, buyers deciding how much to offer, and lenders assessing the risk of a mortgage loan. The correct identification of this value ensures that transactions reflect the true worth of the property, facilitating fair market exchanges and informed decision-making.