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What is ”Market Value?”

What is ”Market Value?”

Market Value1 is the most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress.ï°¾

One definition of Market Value1 is:

most probable price which a property should bring in a competitive and open Market as of the specified date under conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeable and assuming the price is not affected by undue stimulus.ï°¾

This definition may be expanded by adding: Implicit in this definition is the consummation of a Sale as of the specified date and passing of title from seller to buyer under conditions whereby:

  • buyer and seller are typically motivated
  • both parties are well informed or well advised and acting in what they consider their best interests
  • a reasonable time is allowed for exposure in the open Market
  • payment is made in terms of cash in Canadian dollars or in terms of financial arrangements comparable thereto
  • the price represents the normal consideration for the property sold unaffected by special or creative financing or sale concessions granted by anyone associated with the sale

 

1Lines 12.16.1 to 12.16.3 of Canadian Uniform Standards Professional Practice, January 1, 2012