What is defined as the most probable price for which specified property rights should sell in a competitive market?

The term that best describes the most probable price for which specified property rights should sell in a competitive market is market value. Market value is essentially a theoretical concept representing an estimate of the price a willing buyer would pay to a willing seller, both acting knowledgeably and without undue pressure. It reflects the conditions of the market at a specific time, taking into account various factors such as location, property condition, market trends, and comparable sales.

This definition distinguishes market value from other concepts. For instance, market price refers to the actual price at which a property is sold and might not always align with market value due to unique circumstances surrounding a sale. Appraisal value is an estimate provided by a professional appraiser based on various assessments, which again might not coincide with what buyers are willing to pay in the market. Target pricing leans more towards a pricing strategy set by sellers rather than an objective valuation of property rights based on market conditions. Therefore, market value is the most accurate term for the concept of the price at which property rights should ideally be transacted in a competitive market.