How is "market value" defined in real estate terms?

Market value in real estate is defined as the price a property would sell for on the open market under normal conditions. This definition reflects the consensus between a willing buyer and a willing seller, both of whom are knowledgeable about the property and the market, and neither of whom is under any duress to complete the transaction. It is a fundamental concept used to assess the worth of a property in a way that considers current market conditions, demand, and the property's characteristics.

Understanding market value is crucial for various stakeholders in real estate, including buyers, sellers, investors, and appraisers, as it provides a realistic estimate of what a property is likely to fetch in a transaction.

The other choices refer to important aspects of real estate but do not accurately capture the concept of market value. For instance, the price a property is appraised at may differ from its market value, as appraisals can be influenced by various factors and methodologies. Similarly, the amount a seller wishes to receive for a property may reflect personal desires or financial needs rather than an objective market assessment. Lastly, the average price of similar homes sold in the area provides context but does not account for the unique features or conditions affecting an individual property and its specific value in the current market.

Thus