What is the Market Value?
- Buying an apartment in Israel
- Appraisal and value of an apartment
The market value can be defined in a number of ways; what they all have in common is an objective definition and thus also the absolute value of a particular asset at a particular time.
The market value can be defined as “the result of the good and efficient use of a specific apartment”; the most logical use which gives the highest economic value, or as the “reasonable amount in which the rights in the property offered to be used as collateral for credit, either willing buyer and willing seller, “On a specific date, without coercion, after reasonable exposure of the property in the market, with the parties acting as a unit, with discretion, caution and without coercion.” Or according to the market value according to Standard No. 1 for International Appraisal:
‘Marker value’ – The estimated amount for which a property should exchange on the date of valuation between a willing buyer and willing seller in an arm’s- length transaction after marketing where the parties had each acted knowledgeably, prudently, and without compulsion “.