- A property's monetary value is its worth if sold at this moment in time.
- An economic value placed on goods or services in relation to current market conditions. For example, your home's monetary value may increase substantially in times where there are very few homes for sale in your area, but may decrease the same if there's an abundance of homes available on the market, therefore your home may have a different monetary value at any given time.
current price, market value, economic value
Related Terms and Acronyms
- Appraisal — Definition,
- An estimate of the market value of a piece of real estate made by a competent professional who knows local real estate prices and markets.
- Appraised Value — Definition,
- An educated opinion of how much a property is worth.
- Asset — Definition,
- Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
- Book Value — Definition,
- A valuation method determined by taking the original cost of an asset and subtracting any depreciation, impairment or amortization costs.
- The value of a property, item or company as a capital asset based on its cost plus any additions, subtracting depreciation.
- Fair Market Value (FMV) — Acronym, Very Important,
- The highest price that a buyer would pay for a property and the lowest price a seller is willing to accept.
- Home Equity (HE) — Acronym, Very Important,
- The part of a home's value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans.
- Lending Value — Definition,
- The property value for mortgage purposes. Usually the lesser of appraised value or sale price.
- Median Price — Definition,
- In a given area, the amount paid for a house in which half of the houses in that area sell for less and half sell for more.
- Property Value — Definition,
- The worth of a piece of real estate, based on the price a buyer and seller would negotiate.
- Sale Price — Definition,
- The price that is paid for an asset.