In the context of real estate, what does the term "market value" imply?

The term "market value" in real estate refers to the estimated selling price of a property under typical market conditions. This means it reflects a realistic assessment of what a property is worth, taking into account factors such as comparable sales in the area, current market trends, and the condition of the property. It represents a consensus value that a willing buyer and a willing seller would agree upon, with neither being under undue pressure to buy or sell.

Considering other options, the price a property recently sold for is more about historical data and may not reflect the current market conditions or the value under typical circumstances. Potential income generated from the property is related to investment value rather than market value, focusing on how much revenue a property can produce. Lastly, the highest possible sale price available does not represent market value; rather, it could be influenced by unique circumstances or specific buyer competition, which may not represent a typical scenario.