Market value is defined as the amount a home can be sold for in a given market. It is the most probable price that a property should expect to receive during a competitive and open market under all conditions requisite to a fair sale with the buyer and seller each acting prudently, knowledgeable and assuming the price is not affected by undue stimulus.
If a property is not presented in an open market, should the seller be confident he/she has received full value? Maybe not.
A seller should ask: If I am looking for the best price and terms in the sale of my property – and consent to let my Realtor have a pocket listing – how do I know I’ve really received it? The answer is you don’t. You may have saved the inconvenience of people traipsing through your home and dealing with multiple offers, but you also may have missed the boat if you didn’t offer the listing of your property to the open market or Multiple Listing Service (MLS). The MLS allows hundreds of potential buyers access to view your property through their Realtor. If you happen to have competing offers, you’ll most likely receive more than you expected.
Your Realtor may be experienced at estimating a price range wherein your property will sell through analyzing recent comparable sales and their expertise in the market. However, without exposure to the open market, you may never know if they are close to accurate.