What exactly is "market value?"

Market value is determined by the activity in the real estate market and the general economy. Fair market value of a property meets the following criteria:

• Is the most probable price, not the highest, lowest or average price;
• Is expressed in terms of money;
• Implies a reasonable time for exposure to the market;
• Implies that both buyer and seller are informed of the uses to which the property may be put;
• Assumes an arm's length transaction in the open market;
• Assumes a willing buyer and a willing seller, with no advantage being taken by either buyer or seller; and
• Recognizes both the present use and the potential use of the property.