Under normal conditions, a willing buyer and a willing seller, both reasonably informed and under no undue pressure, agree on a price. That price is market value. It is an estimate of what the property should bring in the open market.

Appraisers, agents, and investors all work to determine market value using comparable sales, income analysis, or cost approaches. Market value is not the same as assessed value, insured value, or the price a particular buyer might pay under special circumstances.

Markets shift. Yesterday’s market value can differ from today’s. Accurate valuation requires current data and sound judgment about differences between properties. Overpaying relative to market value is one of the most common ways real estate investments underperform.

Market value is a consensus concept, not a fixed attribute of the property itself.