Definition
Market value is what property should realistically sell for in normal conditions. It's the foundation of appraisals and lending decisions. It's independent of list price (what seller wants) and sale price (what actually happens).
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Market value is the foundational concept in real estate valuation, representing what a property should realistically sell for in a competitive, normal market environment. Unlike list price (aspirational) or sale price (actual transaction), market value represents the theoretical equilibrium price. Market value is influenced by supply and demand, location, condition, and comparable sales in the area.
Pro Tip
Focus on market value rather than list price. Market value is your negotiating baseline.
Example
A neighborhood has comparable homes selling at $420,000-$435,000 with similar features and condition. The market value of the subject property is estimated at $428,000, representing the most probable sale price.