Which of the following is true about market conditions for determining Market Value?

Determining Market Value requires understanding the dynamics between buyers and sellers in the marketplace. The correct assertion emphasizes that for an accurate assessment of Market Value, both parties involved in the transaction should be motivated and well-informed.

Motivation refers to the desire of buyers to acquire a property and the willingness of sellers to part with it, which is fundamental in creating a transaction. Furthermore, being well-informed ensures that both parties have knowledge of the relevant market conditions, comparable sales, and the property’s intrinsic value. This transparency and understanding foster a fair negotiation process, ultimately leading to a transaction that reflects true market conditions.

In contrast, the other statements do not align with the principles of Market Value determination. Having only one buyer and seller would not represent a true market scenario, as a competitive environment is necessary to drive value. Conducting sales in secrecy would prevent a transparent transaction and could distort the understanding of value. Additionally, urgency in selling can often influence the price and does not reflect a standard Market Value scenario, which assumes a level of equilibrium in the decision-making processes of both parties.