What is meant by 'market value' of a property?

Market value is defined as the price a property would likely sell for on the open market, taking into account various factors such as its location, condition, and the current demand for similar properties. It reflects the most probable price that a willing buyer would pay to a willing seller in a competitive and open market, where both parties are acting knowledgeably and without undue pressure.

This definition encompasses the essential aspects of market dynamics, including supply and demand, comparable sales in the area, and the unique characteristics of the property itself. Understanding market value is crucial for individuals involved in real estate transactions, as it serves as a benchmark for price negotiations and helps in assessing the worth of a property in the context of market conditions.