Market Value
/ˈmɑːrkɪt ˈvæljuː/
Definitions
- (n.) The estimated amount for which an asset should exchange on the valuation date between a willing buyer and seller in an arm’s length transaction.
The property's market value was determined by recent sales of comparable homes.
- (n.) The price a willing buyer would pay and a willing seller would accept, neither being under compulsion to buy or sell.
Courts often rely on market value to assess damages in eminent domain cases.
Related terms
See also
Commentary
Market value implies an honest transaction between knowledgeable parties without duress, a key drafting focus in valuation clauses.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.