What is the most probable price a property would bring in an arm's-length sale?

The concept of fair market value is pivotal in real estate transactions, representing the price that a willing buyer would pay and a willing seller would accept in an open and competitive market. This value reflects the property’s actual market conditions and takes into account factors such as location, condition, and current market trends. In an arm's-length transaction, where both parties are acting in their self-interest without pressure, the fair market value serves as the most accurate indicator of what the property is truly worth in that context.

While the asking price is simply what the seller hopes to receive, and the appraised value is an estimation set by a professional appraiser that may not reflect current market dynamics, tax assessed value is often based on historical data and local tax regulations, which can differ significantly from actual market conditions. Fair market value, therefore, provides the most relevant and realistic measure of a property’s worth when considering the circumstances of a standard sale.