1. What is Property Market Value?

Property Market Value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion.

2. How Does the Calculator Work?

The calculator uses the market value formula:

Where:

• \( Assessed\ Value \) — The official valuation of the property for taxation purposes
• \( Market\ Factor \) — A multiplier that adjusts assessed value to current market conditions

Explanation: The market factor accounts for differences between assessed value (which may be outdated) and current market conditions.

3. Importance of Market Value Calculation

Details: Accurate market valuation is crucial for property sales, purchases, refinancing, insurance, and taxation purposes.

4. Using the Calculator

Tips: Enter the assessed value in your local currency and the current market factor (typically provided by local real estate professionals or tax assessors).

5. Frequently Asked Questions (FAQ)

Q1: How often should market value be reassessed?
A: Market value should be reassessed whenever significant market changes occur or at least every 1-2 years.

Q2: What's the difference between assessed value and market value?
A: Assessed value is for tax purposes and may lag behind market value, which reflects current conditions.

Q3: Where can I find the market factor for my area?
A: Consult local real estate professionals, tax assessors, or recent comparable sales data.

Q4: Does this work for all property types?
A: The basic formula applies, but different property types may require different market factors.

Q5: How accurate is this calculation?
A: Accuracy depends on having an appropriate market factor for your specific property and location.