"Market value" means the usual selling price at the place where the property to which the term is applied shall be at the time of assessment; being the price which could be obtained at a private sale or an auction sale, if it is determined by the assessor that the price from the auction sale represents an arm's length transaction. The price obtained at a forced sale shall not be considered.
Market value is based on the concept of an open and competitive market in which transactions are free of duress or forced liquidation. Valuation approaches differ according to the field of application, goals and methodologies used.
To estimate market value, a valuer must first determine highest and best use, or most probable use. Market Value is estimated through application of valuation methods and procedures that reflect the nature of property and the circum-stances under which given property would most likely trade in the (open) market. The most common methods used to estimate market value include the cost approach, sales comparison approach, and the income capitalization approach, including discounted cash flowanalysis.
What is meant with market value?
