What defines Market Value in property assessment?

Market Value in property assessment is defined as the most probable price a property should bring in a competitive market. This definition emphasizes a few key elements: competition, the willingness of buyers and sellers, and the idea that the price reflects what is realistically obtainable under normal circumstances.

Market Value is not merely the highest price a seller believes they can ask for; rather, it is determined by what a buyer is likely willing to pay, assuming both parties are informed, motivated, and acting in their own interest within a reasonable time frame. This means that the price reflects actual transactional activity rather than subjective expectations.

It also differs from the average price of similar properties, as average prices can be skewed by outliers or other factors that do not represent the current market conditions. Additionally, it is not defined by the lowest price a buyer might be willing to pay, which would not consider the competitive nature of the market or the realistic expectations of sellers.

To summarize, Market Value captures a realistic economic perspective, integrating various market forces to determine what a property would likely sell for in an open and competitive environment.