What does "market value" refer to?

"Market value" is defined as the most probable price that a property would bring in a competitive and open market under all conditions requisite to a fair sale. This typically means that the property is being marketed appropriately, allowing for adequate exposure to potential buyers, which aligns with the idea of a likely sale price if a property is marketed appropriately.

This concept emphasizes conditions such as the buyer's and seller's motivations, knowledge of the property, and the local market dynamics. It is not merely an average of selling prices in an area, as individual properties can vary significantly. Additionally, while it is important that the property is marketed under normal conditions, the highest possible sale price referred to in other choices does not necessarily reflect actual market conditions, as factors like market saturation and property condition come into play. The assessed value multiplied by the local tax rate pertains to taxation rather than the market realizable value of a property and does not capture the nuances involved in defining market value accurately. Thus, the definition focuses on the realistic sale price when the property is presented appropriately to prospective buyers.