Which of the following best defines "market value" in real estate?

Market value in real estate is best defined as the theoretical selling price of a property under normal conditions, where both the buyer and seller are well-informed and not under any undue pressure to complete the transaction. This concept reflects the value at which a property would sell in a competitive market, considering various factors such as location, condition, and current market trends.

This definition aligns with the typical understanding of market value as it acknowledges that it is an estimation and does not represent an actual sale price, which could vary due to negotiations, personal circumstances, or external pressures on either party. In short, the theoretical selling price under normal conditions provides a benchmark that real estate professionals and appraisers strive to determine when assessing the value of a property in the real estate market.