Knowledge Focus: Market Value
Market Value
Market Value is the most probable price (in terms of money), which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer whereby:
(1)buyer and seller are typically motivated;
(2)both parties are well informed or well advised, and acting in what they consider their best interests;
(3)a reasonable time is allowed for exposure in the open market;
(4)payment is made in terms of cash in the United States dollars or in terms of financial arrangements comparable thereto;
(5)the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
