What is the market value of a property typically seen as?

Market value is defined as the most probable price that a property will bring in a competitive and open market under all conditions requisite to a fair sale. This definition encompasses several critical factors that influence property values, such as supply and demand, location, property condition, and current market trends.

The concept of market value assumes that both the buyer and seller are well-informed and acting in their own best interests. It reflects a realistic selling price based on current conditions, as opposed to a subjective desire of the seller or a historical sale price. This focus on the most probable price allows appraisers and real estate professionals to provide a valuation that aligns with the expectations of the market rather than personal sentiments or past transactions.

In contrast, the price a seller wants is typically influenced by personal factors and may not reflect market conditions. The last sale price does not account for changes in the market or property conditions that may have occurred since the last transaction. The assessed value by the municipality is often determined for tax purposes and may not accurately represent the property's current market value. Thus, identifying the market value as the most probable price is critical in real estate transactions and evaluations.