What constitutes "market value" of a property?

The concept of "market value" for a property is defined by what it would realistically sell for on the open market, taking into account normal conditions. This means it reflects the price that a willing buyer would pay and a willing seller would accept when both parties are acting in their own best interests, and the property has been exposed to the market for a reasonable time frame. The market value is influenced by various factors including location, condition, and current market trends.

In contrast, the other options don't adequately represent market value. The price to the highest bidder reflects an auction scenario, which may not represent the true market dynamics. An appraisal value determined by a real estate agent may be influenced by personal judgment or methodology and can vary from the actual market value. Finally, the initial listing price set by the seller doesn't necessarily reflect market conditions, as it might be set high or low based on the seller's perceptions or motivations rather than market forces. Thus, the definition that encapsulates "market value" is the price a property would sell for on the open market under normal conditions.