Market Value

Also found in: Dictionary, Thesaurus, Financial, Acronyms, Wikipedia.
Related to Market Value: book value, fair market value

Market Value

The highest price a willing buyer would pay and a willing seller would accept, both being fully informed, and the property being exposed for sale for a reasonable period of time. The market value may be different from the price a property can actually be sold for at a given time (market price). The market value of an article or piece of property is the price that it might be expected to bring if offered for sale in a fair market; not the price that might be obtained on a sale at public auction or a sale forced by the necessities of the owner, but such a price as would be fixed by negotiation and mutual agreement, after ample time to find a purchaser, as between a vendor who is willing (but not compelled) to sell and a purchaser who desires to buy but is not compelled to take the particular article or piece of property.

market value

n. the price which a seller of property would receive in an open market by negotiation, as distinguished from a "distress" price on a forced or foreclosure sale, or from an auction. Market value of real property is normally determined by a professional appraiser who makes comparisons to similar property sales in the area, which are often called "comparables."

References in periodicals archive ?
2016: A Linthwaite three-bed house with a market value of PS100,000 was sold for just PS30,000 - a PS70,000 discount.
anomalies pointed out were of two main categories including (i) the FBR rate in some areas was fixed much higher than the overall average percentage of the fair market value and in some cases even higher than the fair market value and
Overall market values, including new construction added to the roll, rose 0.
Millard Group holds life insurance policies to cover a fair market value redemption liability if any current owner should unexpectedly die," Butler explains, "and the existing redemption agreement provides for redemption payments to be made over time if there ever was any other voluntary transfer of ownership, so that no sale or liquidation will ever be required.
The market value of QUALCOMM, for example, had dropped by nearly 60 percent when this article went to press.
The limitation does not apply, however, to the grant of an option if the exercise price is at least 110 percent of fair market value of the shares (as determined at the time of grant) and if the option ceases to be exercisable on or before the fifth anniversary of the date of grant.
Valuations are necessary for various reasons, but, most importantly, a comprehensive estimate of fair market value is a measure of foresight, business expectations and future economic returns to the owner.
The two-step "before and after" approach for a facade preservation easement involves estimating the fair market value of the property and then using this valuation as a basis for valuing the facade preservation easement.
Management should aim to maximize the dollar amount by which the company's market value exceeds the capital supplied by the firm's investors-- hence the name market value added.
Current value, fair value, market value, mark-to-market all mean one thing: one of the most hotly debated accounting issues of our time.