What is defined as the market value of a property?

Market value refers to the objective worth of a property established by the current competitive market conditions. This concept is grounded in the principle that market value is the price at which a property would sell in an open and competitive market, assuming both the buyer and seller have reasonable knowledge of the relevant facts and are acting in their own best interests.

This objective measure reflects various influences, including location, property condition, market demand, and comparable sales. Consequently, evaluating market value involves analyzing real estate transactions and trends that provide an accurate picture of what a property is worth in its specific market context.

The other options represent subjective or specific aspects of valuation that do not encapsulate the broader definition of market value. For instance, the subjective worth to a buyer emphasizes personal feelings about a property's value, while the seller's willingness to accept a price can vary independently of the market conditions. Similarly, estimating the cost of improvements focuses on the expenses incurred rather than the property’s value in the marketplace. Ultimately, market value is about what a property can realistically sell for, given its competitive environment, making the correct definition a comprehensive assessment of various factors influencing property worth.