What is "market value"?

Market value is defined as the price a property would likely sell for in a competitive market, often referred to as the most probable price that a property will bring when exposed to the market for a reasonable period of time. This concept is integral to real estate transactions and evaluations because it reflects what a willing buyer would pay to a willing seller, both fully informed and motivated, without undue pressures.

This definition considers various factors such as current market conditions, comparable sales, and the unique characteristics of the property itself. The accurate assessment of market value is crucial for buyers, sellers, and real estate professionals to make informed decisions regarding pricing and offers.

In contrast, the original purchase price of the property represents what the previous owner paid and may not reflect current market conditions. The assessed value for tax purposes refers to the value determined by taxing authorities and may not align with market demand or trends. The listing price set by the seller reflects their expectations but does not guarantee that it aligns with true market value, as it could be higher or lower than what buyers are willing to pay in a competitive environment.