CONSULTING
VALUATION
REPORTS
MARKET ANALYSIS
International Valuations Standards devines market value as the
estimated amount for which a property should exchange on the
date of valuation between a willing buyer and a willing seller in
an arm’s- length transaction after proper marketing, where in the
parties had each acted knowledgeably, prudently, and without
compulsion.”
Market value is a concept distinct from the market price, which is
“the price at which one can transact”, while market value is
“the true underlying value” according to the theoretical standards.
The concept is most commonly invoked in line client markets or
disequilibrium underlying market value. For the market price to equal
market value, the market must be informationally efficient and
rational expectations must prevail.
