The term market value is easy to throw into a business conversation but correspondingly difficult to define precisely. Since market value is often cited in CONTRACTs, law courts have developed a very precise definition that has been adopted in many valuation settings. The courts have ruled that market value is the probable price that a buyer and seller would agree to if
1. both the buyer and seller are acting prudently (considering their own best interest)
2. both are motivated to buy and sell
3. both are well informed and well advised about all aspects and potential uses of the property
4. neither are affected by undue stimulus or any special compulsion to buy or sell
5. the market is competitive
6. the ASSETS have had reasonable time and exposure in the market
7. the price is in terms of MONEY consideration and does not reflect the value of any extraneous factors such as seller financing or covenants not to compete
Mack Tennyson