In the context of property appraisal, what does 'market value' refer to?

Market value refers to the estimated amount that a property would likely sell for in a competitive and open market under normal conditions. It is based on what a buyer is willing to pay for the property, reflecting current market trends, demand, and the specific characteristics of the property in question. This concept captures the current financial realities and competitive nature of the real estate market, making it the most widely accepted valuation for transactions.

The other options, while related to property values, do not accurately convey the concept of market value. The historical price of a property may inform potential buyers but does not necessarily reflect its current worth. The assessed value for tax purposes can often differ significantly from market value as it is derived from a different set of criteria, primarily aimed at taxation rather than true market dynamics. Additionally, the price listed by the property owner may not align with what buyers are actually willing to pay, as it often reflects the owner’s expectations rather than a market-driven valuation. Thus, understanding market value is crucial for accurate appraisals and transactions in real estate.