Definitions

In most cases, we estimate what is known as market value. Market value is defined, by the Appraisal Institute, as: "the most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress". This definition also assumes that there is a consummation of the real estate sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated.
   
2. Both parties are well informed or well advised, and each acting in what he considers his own best interest.
   
3. A reasonable time is allowed for exposure in the open market.
   
4. Payment is made in cash in U.S. dollars or its equivalent.
   
5. Financing, if any, is on terms generally available in the community at the specified date and typical for the property type in its locale.
   
6. The price represents a normal consideration for the property sold unaffected by special financing amounts and/or terms, services, fees, costs, or credits incurred in the transaction.