Market Value
Direct definition
The most probable price a home would sell for in an open, competitive market.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Market value is an appraiser's or agent's opinion based on recent comparable sales, condition, and market conditions. It's different from assessed value used for taxes.
Why it matters
Market value drives listing decisions, appraisals, and how much you can borrow.
Where you may see it
- Appraisal report
- Listing materials
- Comparative market analysis
- Title commitment
A real-world example
Comps and condition support a $525,000 market value; the seller lists at $535,000 expecting some negotiation.
Educational and illustrative only
A common misunderstanding
Market value isn't the same as the price a seller lists, the amount owed on a mortgage, or the tax-assessed value.
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This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026