Define the real estate market value as an estimate of what potential buyers are willing to pay for the property. However, there is no guarantee that the property will actually sell at that price ...

The market value for a property is the price that buyers are willing to pay to purchase real estate. For example, a buyer might offer $225,000 for a home that the seller marketed at $240,000.

But it does not set aside a section for determining real estate market value. Publication 561 explicitly states "a detailed appraisal by a professional appraiser is necessary" for proper valuation.

A bear market can also happen in real estate so it’s important to understand how it occurs. If you apply the same definition as stocks, it can mean a 20% or more drop in property values, which ...