What defines market value in real estate?

Market value in real estate is typically understood as the most probable price a property would sell for in a competitive and open market, assuming both buyer and seller are acting in their own best interests. Each of the points provided contributes to defining market value.

When properties sell quickly, it often indicates a strong demand in the market, which can influence the market value positively. However, the definition goes beyond just the urgency of sale.

The motivation of both the buyer and the seller is critical. A motivated buyer is more likely to pay a price that reflects the property's true market value, while a motivated seller is more willing to negotiate effectively. The interaction between these motivated parties in a transaction is a fundamental aspect of establishing the market value.

Financial arrangements equivalent to cash, such as cash offers from buyers, can also play a significant role in determining market value, as cash transactions often allow for quicker sales, fewer contingencies, and can lead to a more favorable perception of property value.

By combining all these elements, one can arrive at a comprehensive understanding of market value, which is why the selection that states "All of the above" is correct. It captures the multifaceted nature of how market value is defined in real estate.