What is market value according to appraisal standards?

Market value, according to appraisal standards, is defined as the most probable price a property would sell for in a competitive and open market. This concept emphasizes that market value reflects the price that would be agreed upon by a willing buyer and a willing seller, each acting in their own best interests, without undue pressure. The condition of a competitive market implies that both parties are informed and have access to the same information, ensuring that the price is a genuine reflection of the property's worth in current market conditions.

This definition is grounded in the principle of supply and demand, where price is influenced by various factors, including market conditions, property attributes, and economic considerations. The focus on the "most probable" price highlights that market value is not simply the highest or lowest price that could be achieved but rather a realistic estimate based on prevailing market conditions.

Other choices present different interpretations of value. The highest price a seller is willing to accept does not account for market dynamics and might not reflect what a buyer is prepared to pay. Similarly, the lowest price a buyer is willing to pay is not indicative of market value since it may not consider what the property is worth in a competitive environment. Lastly, a fixed price set by a tax assessment office does not take into account current