What is defined as the most probable price a property would bring if exposed for sale in an arm's-length transaction?

The most probable price that a property would bring if exposed for sale in an arm's-length transaction is referred to as market value. This concept is central in the field of property assessment, as it reflects the price a willing buyer would pay to a willing seller when neither is under any duress to complete the transaction.

Market value is determined based on comparable sales data, reflecting current market conditions and the intrinsic attributes of the property. It encapsulates the principle that value is founded in what the market is willing to pay, rather than a fixed or historical cost associated with the property.

In contrast, historical cost refers to the original purchase price or the cost of the property, value in exchange typically pertains to the potential of an asset to generate income or provide utility, and value, while a broader term, does not specifically encompass the nuances of market dynamics as effectively as market value does. This is why understanding market value is essential for property assessment and conducting fair evaluations in the real estate market.