The term "market value" generally refers to what type of value?

The term "market value" is most commonly associated with the concept of "Fair Market Value." This value is defined as the estimated amount for which an asset or property would exchange on the market between a willing buyer and a willing seller, both possessing reasonable knowledge of the relevant facts and neither being under any compulsion to act. This notion is crucial in real estate and property assessment because it provides a standard for determining property values based on market conditions.

In the context of property assessments, Fair Market Value is important because it is used as a basis for setting property taxes, informing sales transactions, and conducting real estate appraisals. It reflects not only the intrinsic value of the property itself but also takes into account external factors such as market demand, economic conditions, and competing properties, ensuring that the value assigned is grounded in current market realities.