How is market value being calculated?

Imagine you're shopping for a used iPhone 11 with 256 GB, that's in good condition. You visit a resale website and discover that most are selling for approximately $350.-. Would you be willing to pay $450.-? Probably not. The market value is obviously well-established. There would be no reason to pay more.

Pricing your home for sale is similar. Your home has a market value and, if you were to list it, buyers would expect to pay close to that amount. If you price it too high, many buyers won't even bother to see it. If you price it too low, you run the risk of not reaching all possible buyers for your home.

Many factors come into play when calculation the market value - neighbourhood, street characteristics, special features, upgrades, condition, etc. However, the most important factor is the price of smiliar homes, which have recently sold in your area.

Finding out the market value of your home is a smart idea, even in you don't plan on seslling in the near future. It helps you make better decisions should something change and you need or want to sell.