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WHAT IS MARKET VALUE?

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WHAT IS MARKET VALUE?

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Estimating the market value of a property is usually the goal of an appraisal. There are numerous technical definitions of the term market value but in layman s terms, Market Value is usually defined as the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale. It is assumed that the buyer and seller are typically motivated, well informed or well advised and each acting in his / her own best interest.

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• Market value or fair market value is the most probably price that a property should sell for in a competitive and open market under all conditions requisite to a fair sale.

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Market value is defined as the amount a typical, well-informed purchaser would be willing to pay for a property, under the following conditions:

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Market value is simply defined as the most probable price a property would sell for in an open and competitive market. This assumes that the sale is an “arms length” transaction which means that the buyer and seller have no circumstances which could bias the sale.

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To simplify a complex definition, “Market Value” is the most probable price your property would sell for in a competitive and open market under all conditions requisite to a fair sale. This assumes that the sale is “at arms length” meaning that the buyer and seller are not related, or there are no special circumstances or undue stimuli, which would bias the sale.

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