...The definition of "market value" in its strictest sense is the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1.) buyer and seller are typically motivated; 2.) both parties are well informed or well advised, and each acting in what he considers his own best interest; 3.) a reasonable time is allowed for exposure in the open market; 4.) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; 5.) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. RE: Market Value, which is usually the standard, implies a 'knowledgeable, meaningful, competitive' market. Last time I checked, buyers and sellers were not "well informed" leading up to the economic 'mess.' That would pretty much throw those prior values in the irrelevant basket?? If a buyer and a seller is not "well informed," their self interest can be influenced or maybe skewed; resulting in a social loss. Market Value must be meaningful and there must be a "well informed" buyer and seller, thus acting in their own self interest. Disclosure: all definitions of market value suggests a knowledgeable or, well informed, buyer and seller.
DEFINITION OF MARKET VALUE (this definition is of only one of several)