Market Value

Market value is the most probable price a property should bring in a competitive and open market. It is not the highest price or the lowest price, but the most likely price, assuming both buyer and seller are acting prudently and knowledgeably.For a value to be considered "market value," several conditions must be met:Relationship: The buyer and seller are typically motivated and are not related (an "arm's length transaction").Knowledge: Both parties are well-informed or well-advised and acting in their own best interests.Time: The property has been on the open market for a reasonable amount of time.Cash Equivalent: Payment is made in cash or its equivalent (standard financing).No Duress: Neither party is under undue pressure to buy or sell (e.g., not a forced foreclosure sale).