What does "market value" refer to?

"Market value" refers to the estimated price at which a property would sell on the open market under normal conditions. This concept generally assumes that both the buyer and the seller are well-informed, acting in their own best interests, and that the property is exposed to the market for a reasonable period. Market value captures the ideal conditions of supply and demand, reflecting the property's worth objectively rather than subjectively or under duress.

In contrast, other options represent different concepts related to property valuation. For instance, a distressed sale may involve circumstances that pressure a seller to accept a significantly lower price than the property's true market value, so it does not accurately portray the property’s worth under normal market conditions. The highest price a buyer is willing to pay could reflect emotional factors or unique buyer preferences, which can skew the value away from an objective market assessment. Lastly, the price determined by a real estate appraiser provides a professional estimate based on standardized methods and comparable sales but may not fully align with the market conditions at the time of sale. Hence, the correct understanding of market value encapsulates the price expected in an unrestricted, competitive atmosphere.