The Appraisal Foundation's Uniform Standards of Professional Appraisal Practice defines market value as: "the most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the sale price isn't affected by undue stimulus." This definition assumes that the following conditions are met:
1. The buyer and seller are motivated.
2. Each party is well informed and acting in his or her own best interests.
3. A reasonable amount of time is allowed for the property to be exposed on the open market.
4. Payment is made in cash in U.S. dollars or in comparable financial arrangements.
5. The price represents the normal consideration of the property sold and is unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
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