What is typically a key factor in determining market value?

A key factor in determining market value is typically the recent sales of comparable properties in the area. This approach, often referred to as the comparable sales method, analyzes properties that are similar in characteristics (such as size, location, and condition) that have recently sold. The market value is influenced by what buyers are currently willing to pay in the market, and comparable sales provide a realistic benchmark against which to assess the value of a given property.

While assessed value, a buyer's financial situation, and the original purchase price might provide some context, they do not represent the current market dynamics as accurately as recent sales data. Assessments can lag behind market trends, personal financial situations vary widely and are individual to each buyer, and a property's original purchase price may not reflect its current market value due to fluctuations in the real estate market. Therefore, focusing on recent sales of comparable properties offers a more reliable and relevant indication of market value.