Definition of Market Value

Here's the definition of market value used by the International Association of Assessing Officers (IAAO).

Market value is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined. A current economic definition agreed upon by agencies that regulate federal financial institutions in the United States of America is: 

The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 

The buyer and seller are typically motivated; 

Both parties are well informed or well advised, and acting in what they consider their best interests; 

A reasonable time is allowed for exposure in the open market; 

Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; 

The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.