- It is used to calculate a replacement cost when a property is destroyed.
- 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
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: