What is the market value?

The market value is the price that one can hope to obtain from a property at the time of a hypothetical resale. It is therefore an amount proportional to the market price, based on an estimate.From a legal point of view, the market value is the amount that could be obtained, at the closing date, from the sale of an asset in a transaction concluded under normal market conditions, net of exit costs. ”It is therefore a price at which an asset could be sold, calculated on the basis of market prices, under so-called normal conditions.In the case of real estate, it has two main uses:

1. It is used to calculate a replacement cost when a property is destroyed.
2. From a tax point of view, the market value is used to evaluate the assets of a taxpayer. The aim is to avoid that individuals underestimate the value of their real estate when declaring it. The control authorities then compare the declared value with the market value