What is included in the definition of market value?

The definition of market value fundamentally revolves around the conditions under which a property is bought and sold in an open market scenario. When we refer to the correct choice, it includes the concept of exposure on the market for a reasonable length of time, and that both the buyer and seller are under no duress. This reflects a healthy transaction where the buyer has had the opportunity to evaluate the property thoroughly, and the seller is not being pressured to sell under unfavorable circumstances.

This option emphasizes the importance of market dynamics and buyer-seller relationships, which are central to determining a property's fair market value. The idea is that the price at which a property sells should reflect its true value when both parties are making informed decisions driven by market conditions rather than external pressures. Thus, this component is key to evaluating the market value accurately, making it a foundational aspect of real estate transactions.

In contrast, factors such as whether the property is being used in its current capacity or is inspected by a certified inspector do not fundamentally influence the market value itself but pertain more to the condition and usability of the property. Moreover, while being clear of encumbrances is beneficial for a sale, it does not alone dictate the market value, as properties can have various circumstances that affect how they're