Which value definition relates to the highest price a buyer is willing to pay in the current market?

The definition of market value aligns with the highest price a buyer is willing to pay in the current market. Market value is determined by the interplay of supply and demand in the real estate market at a given point in time. It reflects what a hypothetical buyer would be willing to offer for a property under typical market conditions, where both buyer and seller are well-informed and acting in their own best interest.

Market value is influenced by various factors, including comparable sales, current market trends, location, and specific property attributes. It represents a consensus value that buyers and sellers can agree upon during negotiations. This is why it is a key concept in real estate and appraisal practices, as it helps to establish a baseline for pricing properties accurately.

In contrast, terms like book value, fair value, and appraised value do not necessarily reflect the price a buyer is willing to pay in the open market at that moment. Book value often relates to the value recorded in financial statements, fair value can be more subjective and may not reflect current market conditions, and appraised value is determined by an appraiser based on a set of criteria that may not include active buyer interest.