What is a property’s "true market value"?

A property's "true market value" is defined as the price a property would sell for under normal market conditions. This concept reflects the fair market value, which is determined by what a willing buyer would pay to a willing seller in an open and competitive market, without any external pressures or special incentives altering the price.

This value takes into account various factors such as location, property condition, market demand, and comparables—similar properties that have recently sold in the area. Understanding true market value is essential for tax assessors, appraisers, and real estate professionals as it serves as a baseline for assessing property value in the context of taxation, sales, and investment.

The other options focus on different aspects of property valuation. The estimate by a local tax assessor may not necessarily reflect the true market conditions, as assessors can use standardized methods of valuation that might not align with current market trends. The price listed on the real estate market may also not equate to true market value, particularly if a property is overpriced or undervalued. Additionally, the value assigned for tax purposes can differ from true market value, as it may be influenced by a variety of factors, including assessment ratios and local tax policies.