Which of the following best defines market value?

Market value is best defined as the fair price established by the market, which reflects what a property is worth based on the current economic conditions and comparable sales. This concept is rooted in the idea that market value is determined through the balance of supply and demand. It represents a consensus among buyers and sellers in a competitive marketplace, taking into account the features, condition, and location of the property as well as recent sales of similar properties.

When the market is healthy, the price a willing buyer agrees to pay and a willing seller agrees to accept typically aligns closely with the market value. This makes it a dynamic figure that can fluctuate over time based on changing market conditions. Thus, while other choices may touch on aspects related to pricing—such as what a buyer might pay or what a seller hopes to receive—market value specifically encapsulates the broader consensus price established by market dynamics, providing a more comprehensive and objective measure.