How is market value best defined?

Market value is best defined as the estimated value of a property under current market conditions. This concept reflects what a knowledgeable and willing buyer would pay for the property, as well as what a willing seller would accept, assuming the transaction occurs under normal conditions without pressure. It takes into account various factors such as location, condition of the property, and prevailing economic conditions at the time of sale.

This definition is critical because it is used by appraisers, real estate agents, and buyers to determine a fair price for a property in the current market. It provides a more accurate representation of a property's worth than merely considering the lowest price a seller will accept, which could be influenced by personal circumstances or desperation to sell. Unlike historical value, which looks at past prices and trends, or the price in a forced sale, which may not reflect fair market conditions, the estimation of market value is a dynamic figure that adjusts according to current demand and supply.