How is "market value" of a property defined?

Market value of a property is defined as the estimated price in a competitive market. This concept reflects what a typical buyer would pay for a property when both the buyer and seller are acting in their own best interests, and the property has been exposed to the market for a sufficient amount of time.

In a competitive market, multiple buyers may generate interest in the property, which can influence the price upward. It incorporates various factors such as location, condition, and current market trends, making it a realistic reflection of the property's worth. The idea is that in an open and fair market, the price that a reasonable buyer is willing to pay generally aligns with what an informed seller would accept, leading to an estimated market value that represents the true value of the property at that moment in time.