Market Value is

• A. also known as value in exchange. Based on the cumulative judgement of multiple sales in the marketplace
• B. the least probable price
• C. the price charged by the bank for a loan
• D. the list price set by the seller

Answer: (A)

Market value is the price a property would likely bring in an open market between a willing buyer and a willing seller, both informed and acting without pressure. This value is derived from the consensus of market evidence, typically the collective results of multiple recent sales of comparable properties, which is why it’s also described as value in exchange. It reflects what the market indicates the property is worth, not necessarily the seller’s asking price or a single transaction.

It’s not the least probable price, nor the price a bank uses for a loan, and it’s not simply the list price set by the seller. The list price is a starting point from the seller’s perspective, while market value rests on actual market data and informed buyer-seller behavior.