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The International Valuation Standards defines market value as follows (IVSC 2019 , p. 18):

Market value is the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction after proper marketing where the parties had each acted knowledgeably, prudently, and without compulsion.

This definition is also the official one in the United Kingdom and accepted by RICS. In the RICS Valuation – Global standards (RICS 2019 ), the standards from IVSC are included in full as Part 6 of that book.

The US Appraisal Institute presents the following definition (Appraisal Institute 2013 , p. 58):

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 a fair sale, with the buyer and seller each acting prudently, knowledgably, and for self‐interest, and assuming that neither is under undue duress.

Looking closer at these definitions, some common elements can be found:

 A date of valuation (a measurement date).

 Reference to the amount that the property should exchange for after proper marketing (reasonable exposure, in an orderly transaction).

 Reference to buyers and sellers acting knowledgably and prudently: this is discussed in Section 2.4.

 Reference to a willing buyer/willing seller: this is discussed in Section 2.5.

But there are also some differences:

 The IVSC/RICS definition refers to ‘the estimated amount’ while the US definition refers to ‘the most probable price’ (discussed in Section 2.4).

 The US definition refers to ‘a competitive market’ but there is no such reference in the IVSC one: this is discussed in Section 2.6).

Another problem that will be discussed in this chapter is the relation between turnover and market price, and whether turnover in some way should be included in the definition (Section 2.8). In both the standards, there is also a discussion about ‘highest and best use’ and this will be discussed in Section 2.9.