Define "market value" in the context of real property appraisal.

In real property appraisal, "market value" refers to the most probable price a property would sell for in a competitive and open market. This definition is grounded in the principles of supply and demand in real estate where buyers and sellers interact freely, without undue pressure. Market value represents a fair, unbiased estimate that reflects what a knowledgeable buyer would be willing to pay and what a well-informed seller would accept, assuming both parties are acting in their own best interests.

This is distinct from speculative future growth, which is based on predictions and not on actual market behavior or historical data. Minimally acceptable prices or the maximum amounts buyers are willing to pay do not accurately reflect market value either, as they focus on subjective thresholds rather than an objective assessment of what the property would likely command in the current market under normal conditions. By emphasizing a scenario where both parties participate actively and knowledgeably, the definition encapsulates the essence of market transactions in real estate.