How is "market value" defined in real estate?

Market value in real estate refers to the most probable price a property would sell for in an open and competitive market, assuming that both the buyer and seller are acting knowledgeably and voluntarily. This concept captures the idea that market value is not just based on past transactions or averages, but rather on what a property is likely to command in the current market conditions.

To establish market value, various factors must be considered, including the property's features, location, market trends, and the economic environment. This makes option B the most accurate representation of market value, as it directly addresses the prevailing conditions that influence property pricing at any given time.

Understanding market value is crucial for both buyers and sellers, as it helps to inform reasonable offers, list prices, and negotiations during a real estate transaction.