Quick Answer
Market value reflects current buyer demand, recent comparable sales, and a home's condition and location. It's distinct from assessed value, the figure your county uses for property taxes, which can lag behind or diverge from what buyers are actually paying.
- Driven by
- Buyer demand, comps, condition, location
- Estimated by
- A real estate agent's CMA or a licensed appraiser
- Different from
- Assessed value, list price, and asking price
- Changes with
- Market conditions, season, and inventory
How Market Value Is Estimated
Real estate agents estimate market value using a comparative market analysis (CMA), which looks at recently sold homes similar in size, condition, and location. Lenders instead rely on a licensed appraiser's independent opinion, which follows a more formal process but the same basic logic of comparable sales.
Because it's tied to current conditions, market value shifts with supply, demand, interest rates, and the season, unlike assessed value, which updates less frequently.
Market Value vs. Assessed Value vs. List Price
These three numbers often get confused, but they serve different purposes. Assessed value is set by the county for tax purposes and can trail actual market conditions. List price is what a seller chooses to ask, influenced by their agent's market value estimate but ultimately a strategic decision. Market value is the estimate of what a willing buyer would actually pay.
A knowledgeable local agent can walk a Central Indiana seller through where their home likely falls, and where the list price should sit relative to that estimate, before the home ever hits the market.
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Frequently Asked Questions — Market Value
Is market value the same as my home's list price?
Not exactly. List price is a strategic choice a seller makes, often informed by market value but not required to match it exactly.
How is market value different from assessed value?
Assessed value is set by the county for tax purposes and can lag behind current conditions; market value reflects what a buyer would pay today.
Who determines market value?
Real estate agents estimate it through a CMA, and licensed appraisers provide a formal opinion of value for lenders.
How can I find my home's current market value?
A local agent can prepare a free comparative market analysis based on recent, comparable sales in your area.