What does market value on a home mean?
Market value is the amount of money that a property would be sold for on the open market. This is determined by an appraiser based on its condition and comparable properties that have recently sold. Note that market value may not match the purchase price.
Factors that affect market value on a home include:
- The house's age
- Location
- Square footage
- The number of beds and bathrooms
- Special features like a garage or pool
- What several comparable homes, or ``comps,'' have sold for recently
In a hot housing market where homes receive multiple offers and sell quickly, you may be willing to pay more to keep up with or outbid the competition.
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