{"id":4087,"date":"2018-12-13T07:40:19","date_gmt":"2018-12-13T12:40:19","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=4087"},"modified":"2019-04-23T07:04:59","modified_gmt":"2019-04-23T11:04:59","slug":"home-market-value","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2018\/12\/13\/home-market-value\/","title":{"rendered":"Home market value"},"content":{"rendered":"
\"home<\/a>
Home Market Value (infographic from keepingcurrentmatters.com)<\/figcaption><\/figure>\n

It\u2019s normal for homeowners to wonder about their home market value. After all, home sales and prices have been making headlines for well over a decade<\/a>.\u00a0 But you certainly can\u2019t get a home market value from a headline, nor can you assume it from a neighbor\u2019s sale.\u00a0 The reality is that your home market value could vary depending on whom and when you ask.<\/p>\n

A timely and important review article by Michael Sanders recently published in the Appraisal Journal<\/em> <\/a>asks the question \u201cwhat does Market Value Mean?\u201d \u00a0(Market Value: What Does It Really Mean?; Appraisal Journal. <\/em>Summer2018, 86:3, p206-218).\u00a0 The article correctly points out that determining \u201cmarket value\u201d can realize different results depending on the scope and purpose of the appraisal.\u00a0 You can see how this might be problematic if you\u2019re trying to determine a home\u2019s value when divorcing or trying to sell an estate property.\u00a0 Some mortgage lenders even have different value criteria depending on the loan product and purpose.<\/p>\n

Sanders suggests that \u201cmarket value\u201d undergoes scrutiny when valuations are difficult and appraisals are questioned (e.g., during a recession).\u00a0 However, having a discussion about the meaning of \u201cmarket value\u201d now, when there is relative market stability, is probably meaningful for the industry and consumers.\u00a0 Interestingly, the semantics of \u201cmarket value\u201d have changed through the years, and ultimately depends on the application.\u00a0 He points out at least twelve similar but different legal definitions of \u201cmarket value.\u201d<\/p>\n

Sanders suggests that Richard Radcliff, an appraisal pioneer of the 1960\u2019s, was ahead of his time by advocated for most probable price valuations.\u00a0 An ongoing debate in appraisal circles is whether \u201cmarket value\u201d is the highest price<\/em> or probable price<\/em>.\u00a0 However, it wasn\u2019t until the 1980\u2019s when appraisal articles academically contemplated the association of \u201cprobable sale price<\/a>\u201d and \u201cmarket value.\u201d<\/p>\n

Sanders quotes Richard Ratcliff saying, \u201cappraisal is largely the predicting of human behavior under given market conditions<\/em>.\u201d\u00a0 Sanders quips about an \u201cideal world\u201d, where \u201cappraisers would apply market value definitions using a relatively consistent and objective standard, and reflect conditions in the market as they exist, rather than how others might wish them to be.<\/em>\u201d<\/p>\n

Although the accepted dictionary definition of \u201cmarket value\u201d is the price a buyer is willing to pay<\/a> for your home, market value and sale price could be different (and often is).\u00a0 And according to Sanders, an appraised \u201cmarket value\u201d isn\u2019t necessarily the price for which your home may sell.<\/p>\n

At this point you may be asking yourself, \u201chow much is my home really worth<\/a>?\u201d\u00a0 For the answer, you may have to ask a Realtor.<\/p>\n

Realtors use market data to prepare comparative market analyses<\/a> (CMA) that can help buyers and sellers decide on a sale price.\u00a0 Although a CMA is not an appraisal, it is a technical and methodical professional analysis that provides a snapshot of the market.\u00a0 The CMA is typically more refined in scope than an appraisal, such that it is usually limited to a neighborhood and home criteria.\u00a0 Additionally, depending on the location and availability of comparable sales, it can provide a 30, 60, and 90-day probable sale price range based on market trends.<\/p>\n

If you\u2019re planning a home sale, a Realtor\u2019s CMA may be your best source of information to decide on a listing price.\u00a0 Even mortgage lenders have relied on Realtor CMA\u2019s, in the form of Broker Price Opinions, to help decide on sale prices for short sales and bank owned homes.<\/p>\n

Original published at https:\/\/dankrell.com\/blog\/2018\/12\/13\/<\/span>home-market-value<\/span>\/<\/span>(opens in a new tab)<\/span><\/p>\n

By Dan Krell<\/a>. Copyright \u00a9 2018.<\/p>\n

If you like this post, do not copy; instead please:
\nlink to the article<\/a>
\nlike it on facebook<\/a>
\nor re-tweet<\/a>.<\/p>\n

\"Protected<\/a>
\nDisclaimer<\/a>. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

Your home market value varies depending on whom and when you ask. Market value is not necessarily what your home can sell for.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[428,419,469,33,123,382,32,401,140,1177,13],"tags":[929,704,936,810,912,633,871,706,708,797,517,507,1178],"class_list":["post-4087","post","type-post","status-publish","format-standard","hentry","category-appraisal","category-home-owner","category-home-prices","category-home-pricing-strategy","category-home-sale","category-home-seller","category-home-selling-strategy","category-home-value","category-home-values","category-market-value","category-real-estate","tag-appraisal","tag-cma-2","tag-home-prices","tag-home-pricing-strategy","tag-home-seller","tag-home-selling","tag-home-values","tag-house-values","tag-market-value","tag-real-estate","tag-selling-a-home","tag-selling-strategy","tag-whats-my-home-worth"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-13V","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/4087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=4087"}],"version-history":[{"count":14,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/4087\/revisions"}],"predecessor-version":[{"id":4331,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/4087\/revisions\/4331"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=4087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=4087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=4087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}