The clear market value is the amount of money that something is worth in a fair exchange, determined by the price a seller is willing to accept and a buyer is willing to pay. This value can be influenced by factors such as supply and demand, item condition, and the opinions of buyers and sellers. It is crucial in assessing the worth of property, goods, and services.
The clear market value, also known as fair market value, refers to the price that a buyer is willing to pay and a seller is willing to accept for a product or service in an open market transaction. For instance, when selling a car, the clear market value is the price agreed upon by the buyer and seller. If the seller asks for $10,000 and the buyer agrees to pay that amount, then the clear market value of the car is $10,000. This example demonstrates how clear market value is determined through negotiations between the buyer and seller, taking into account factors such as supply and demand, competition, and the condition of the product or service being sold.
Clear market value refers to the price at which a property or asset would sell in an open and competitive market, assuming both the buyer and seller are knowledgeable about the property and under no compulsion to buy or sell.
Clear market value is typically determined by considering various factors such as recent sales of similar properties, current market conditions, location, condition of the property, and any unique features or improvements.
Clear market value is important in various legal contexts, such as real estate transactions, taxation, insurance claims, and divorce settlements. It helps establish a fair and accurate value for the property or asset involved.
Yes, clear market value can differ from the appraised value. While appraised value is an estimate of a property’s worth by a professional appraiser, clear market value is the actual price at which the property would sell in the market.
Yes, clear market value can change over time due to various factors such as changes in the economy, real estate market trends, supply and demand, and any improvements or damages to the property.
Yes, clear market value can be disputed if there are disagreements between parties involved in a transaction or legal matter. In such cases, it may be necessary to seek the opinion of experts or hire appraisers to provide their professional assessment.
Clear market value is often used as a basis for property tax assessments. Tax authorities may determine the assessed value of a property by applying a certain percentage to its clear market value.
Yes, clear market value can be influenced by external factors such as changes in zoning regulations, nearby developments, economic conditions, and environmental factors.
Clear market value and fair market value are often used interchangeably, as both terms refer to the price at which a property would sell in an open market. However, the specific legal definitions may vary depending on the jurisdiction.
Yes, clear market value can be used as evidence in legal disputes, particularly in cases involving property disputes, divorce settlements, eminent domain, or insurance claims. It helps establish the value of the property for the purpose of resolving the legal matter.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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