What is the definition of "market value" in property assessment?

Market value in property assessment is fundamentally defined as the most probable price a property would bring in an open and competitive market. This definition reflects the notion that market conditions play a significant role in establishing value. Market value assumes that the property is being bought and sold under normal conditions, where both buyer and seller act with reasonable knowledge of the relevant facts and without undue pressure.

In this context, the definition captures the essence of real estate transactions, where prices are not just influenced by individual seller expectations or arbitrary values, but rather through the interaction of supply and demand in the marketplace. This means that the market value is determined by what similar properties in the area have sold for and the current market trends, allowing for a fair and objective assessment of value.

Assessors rely on this definition to ensure that property assessments are aligned with market realities, supporting the integrity of taxation and valuation processes. This understanding is crucial for accurately determining property taxes and ensuring equitable treatment among property owners.