What does market value refer to in property terms?

Market value in property terms is defined as the price a willing buyer would pay to a willing seller in an open and competitive market. This concept encapsulates the idea of a fair transaction between two parties who are both motivated to engage in the sale, without any undue pressure or influence. Market value reflects the current state of the real estate market, taking into account various factors such as location, property condition, and economic conditions.

It is a fundamental concept in real estate that guides pricing strategies and investment decisions. By focusing on this open exchange between buyer and seller, market value provides insight into what properties are worth at a given time, based on actual market conditions rather than arbitrary valuations or external assessments.