Bases of Value

Question 1

Market value

Answer 1

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 arms-length transaction, after proper marketing, when the parties acted knowledgeably, prudently, and without compulsion

Question 2

Market Rent

Answer 2

The estimated amount for which an interest in real property should be leased on the valuation date, between a willing lessor and willing lessee, on appropriate lease terms, in an arms length transaction, after proper marketing, when the parties acted knowledgeably, prudently and without compulsion

Question 3

Fair Value

Answer 3

The price that would be received to sell an asset or transfer a liability in an orderly transaction, between market participants, on the measurement state