Current Market Value

Definition§

Current Market Value (CMV) refers to the estimated amount a property would cost or be sold for in the current market conditions. This value takes into account several factors including economic conditions, the demand and supply of similar properties, the condition and location of the property, as well as any unique features it may have.

Examples§

1. Residential Property:

   • A 3-bedroom home in a suburban area might have a current market value of $300,000 if comparable homes in the neighborhood have recently sold for similar amounts.

2. Commercial Property:

   • An office building in a downtown area could be valued at $10 million based on the prices of other office buildings sold in the same district recently.

3. Automobile:

   • A 2018 model car with 30,000 miles can have a current market value of $15,000 if similar cars in the market are being sold at this price point.

Frequently Asked Questions§

Q: How is the current market value of a property determined?

• A: The current market value is determined using a comparative market analysis (CMA) which considers the recent sales of similar properties, the property’s condition, location, and any unique features.

Q: What factors can influence the current market value of a property?

• A: Factors include economic conditions, interest rates, the real estate market’s current demand and supply, location desirability, condition of the property, and features or amenities.

Q: Is the current market value always accurate?

• A: While CMV is an estimate based on available data, it may not be perfectly accurate. Market conditions can shift rapidly, and individual property features can vary widely.

Q: Does the current market value affect my property taxes?

• A: Yes, property taxes are often calculated based on the assessed value of the property, which is influenced by its current market value.

Q: Can the current market value of a property change over time?

• A: Yes, CMV can fluctuate due to changes in the real estate market, economic conditions, and specific changes to the property or area.

Related Terms§

• Fair Market Value (FMV): The price at which a property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell.
• Appraised Value: The value assigned to a property by a professional appraiser, typically for the purpose of securing a mortgage.
• Assessed Value: The dollar value assigned to a property by a public tax assessor for the purposes of taxation.
• Liquidation Value: The estimated net amount that an asset or business could quickly be sold for, typically in a situation where the sale is made urgently.

Online References§

1. Investopedia: Current Market Value
2. Realtor.com: What is Market Value?
3. Zillow: Understanding Home Market Values and Listing Prices

Suggested Books for Further Studies§

1. Real Estate Principles: A Value Approach by David C. Ling and Wayne R. Archer
2. The Art of Real Estate: A Guide to Successful Wealth Building by Cynthia Cummins
3. Investing in REITs: Real Estate Investment Trusts by Ralph L. Block
4. Principles of Real Estate Practice by Stephen Mettling and David Cusic

Fundamentals of Current Market Value: Real Estate Basics Quiz§

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