Monday, January 23, 2017 / by Joseph Pfeffer
- Physical factors, such as location or topography
- Economic factors, like availability of credit or the amount of inventory available (lots houses for sale but few buyers, or lots of buyers but not many houses for sale)
- Political factors, such as taxation regulations
- Social factors, such as population shifts
The Uniform Standards of Professional Appraisal Practice (USPAP, www.uspap.org), which generally defines appraisal standards in the United States, defines market value as the kind of value a property should bring in a competitive and open market under all conditions requisite to a fair sale. Just like the stock market, where stock values change according to market conditions, property values change over time. It is important to consult an industry professional to get a realistic picture of your property's current market value. Don't trust such an important financial decision to the general calculators out there on the internet!