Market value

Estimated market value of a property.

Market value (valeur venale) is the estimated market value of a property — the price a buyer would be willing to pay under normal market conditions.

For mortgage calculation, banks use the lower of the purchase price and the estimated market value (lower-of principle).

Market value is estimated by the bank using hedonic models and, for large amounts, a physical appraisal.

If the market value is below the purchase price, the buyer will need to provide additional equity to cover the difference.

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