In real estate, market value is an estimate of the highest price that a willing buyer would pay and a willing seller would accept for a property, assuming both parties are fully informed and acting without undue pressure. It is based on the premise that the property has been exposed to the open market for a reasonable period of time.
Market value differs from market price in that it reflects typical market conditions rather than the specific circumstances of an individual transaction. Appraisers, lenders, and investors rely on market value as a standardized measure of worth, using it to support lending decisions, investment analysis, and property taxation.
