What does market value represent?

Market value represents the most probable selling price of a property under normal conditions in the open market. This concept is grounded in the idea that market value reflects what a willing buyer would pay to a willing seller when both parties have reasonable knowledge of relevant facts and are not under undue pressure to act.

Understanding market value involves recognizing that it is not simply about what one party expects or desires; rather, it is influenced by current market conditions, comparable property sales, and the overall demand for similar properties. This creates a more objective evaluation of a property's worth.

In contrast to other options, the notion of an investor's willingness to pay focuses on individual perceptions and may not encompass broader market dynamics. Similarly, a seller's expectations might be based on an optimistic viewpoint that doesn't necessarily align with market conditions. Lastly, the estimated cost of appraisal services is a completely separate consideration, associated with the process of determining a property's value rather than defining what market value itself represents.