Market Value
The most probable price a property should bring in a competitive and open market under fair conditions with informed, willing parties.
Market value is the most probable price a property should bring in a competitive and open market, assuming a willing buyer and seller, both reasonably informed, neither under pressure, and with the property exposed for a reasonable time.
Market value differs from market price, which is the amount actually paid in a specific transaction. A sale made under pressure or with poor information can produce a price above or below market value.
On the exam
Exam trap
Tested in
Appraisal (8% of the exam)
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- Sales Comparison Approach
An appraisal method that estimates value by comparing the subject to recent sales of similar properties and adjusting the comparables toward the subject.
- Highest and Best Use
The legally permissible, physically possible, financially feasible, and maximally productive use of a property, used as the basis for appraised value.
- Capitalization Rate (Cap Rate)
The rate of return on an income property, equal to net operating income divided by value.
This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.