Estimated Market Value | Minnesota Department of Revenue (2024)

FAQs

What does estimated market value mean? ›

ESTIMATED MARKET VALUE – This value is what the assessor estimates your property would likely sell for on the open market.

Assigned by a local government for property tax purposes. The price a buyer and seller would agree upon in an open and competitive real estate market. Determined by local tax assessors.

In determining fair market value, real estate appraisers customarily use: The comparable sales approach, based on recent sales of property similar to the property being appraised. The income approach, based on capitalization of the income that the property is capable of producing through its highest and best use.

We use a statistical model as a tool to find typical income and expenses for similar properties to yours (in terms of size, location, number of units and age). Then we apply a formula to the income data to get to your Market Value.

An appraised value is assigned to a property by a professional real estate appraiser at a specific point in time. On the flip side, market value is a variable that's determined by larger market forces and economic conditions.

Market value is determined by the valuations or multiples accorded by investors to companies, such as price-to-sales, price-to-earnings, enterprise value-to-EBITDA, and so on. The higher the valuations, the greater the market value.

Market value—also known as market cap—is calculated by multiplying a company's outstanding shares by its current market price. If XYZ Company trades at $25 per share and has 1 million shares outstanding, its market value is $25 million.

Key Differences:

Purpose: Market value is used in real estate transactions, such as buying or selling a property. Assessed value, on the other hand, is used solely for tax assessment purposes. Determination: Market value is determined by real estate professionals, appraisers, or through comparative market analysis.

If buyers are few and far between when you list your home, there's a chance the market value will be lower than the appraised value. On the other hand, if you're seeing a ton of interest in your home from multiple buyers, you may find that the market value is higher than the appraisal value.

The just value is the property's market value. The assessed value is the just value minus assessment limitations (see the Save Our Homes section below). The taxable value is the assessed value minus exemptions and is the value the tax collector uses to calculate the taxes due.

What is just market value in Florida? ›

The Supreme Court of Florida has declared “just value” to be legally synonymous to “full cash value” and “fair market value.” The fair market value of your property is the amount for which it could sell on the open market.

Appealing your Home's Taxable Value

Any homeowner can ask for their home to be reassessed to determine its taxable value. If the appeals board reduces the value of the home, the tax burden will be lowered, because the property tax is computed by multiplying the home's taxable value by the current tax rate.

It is based on: the most valuable use of the asset (which may be different to how it is currently used) the amount that a willing buyer and seller would agree to in an arm's length transaction.

In most cases, assessed value ranges from 80% to 90% of the market value. However, it's certainly possible for assessed value to be higher or lower than this range, depending on various factors that may impact the assessment rate set by the local jurisdiction.

Importance of market value

Market value helps determine what an asset is worth. Because the market value is agreed upon by the market in general, which includes both buyers and sellers, it helps facilitate trades and transactions.

Market value is an asset's current market price. Fair market value (FMV) differs in that it is the price a product would sell for on the open market with the following assumptions: Both buyer and seller are reasonably knowledgeable about the asset. Buyer and seller are behaving in their own best interests.