What is the market value defined as in real estate?

Market value in real estate is defined as the most probable price a property would sell for in a competitive and open market, assuming that both the buyer and seller are acting knowledgeably and prudently. This definition encompasses various factors, such as current market conditions, property location, and demand, which all contribute to establishing a realistic and fair price at which properties trade. This value is vital for setting sale prices, assessing property taxes, and conducting appraisals.

The other choices provide different perspectives on property valuation but do not capture the essence of market value. The highest price a seller demands might not reflect the property's worth in a competitive market. The assessed value post-revaluation relates to tax purposes and can differ from market value. Lastly, the average sale price of similar properties does not account for unique attributes of a specific property, making it less accurate in determining market value.