How is 'market value' defined?

Market value is defined as the most probable sale price of a property in a competitive market, taking into consideration the conditions of the marketplace, including demand and supply dynamics. This definition highlights the importance of market conditions, where properties are typically assessed based on what a willing buyer is likely to pay and a willing seller is likely to accept, given the current market environment.

This concept emphasizes the idea of a competitive marketplace where various factors, such as location, property characteristics, and comparable sales, play a role in the final sale price that reflects an accurate representation of what the property is worth to buyers and sellers at that specific time. A competitive market allows for multiple buyers and sellers, which can drive prices to align closely with this 'most probable sale price.'

In contrast, the highest price a seller can get, the lowest price a buyer is willing to pay, and the average price of similar properties do not fully capture the complexities of market dynamics in determining market value, as they may be influenced by unique negotiations, individual circumstances, or statistical measures that do not reflect the immediate conditions of buyer and seller interactions.