Introduction
This topic contains information on the definition of market value.
Definition of Market Value
Market value is the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
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buyer and seller are typically motivated;
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both parties are well informed or well advised, and each acting in what he or she considers his/her own best interest;
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a reasonable time is allowed for exposure in the open market;
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payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
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the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.