What is a "market value" as defined by the Wisconsin Department of Revenue?

The definition of "market value" as defined by the Wisconsin Department of Revenue focuses on the most probable price that a property would sell for in a competitive and open market. This concept reflects the idea that market value is not just a single price point but rather the outcome of various factors such as supply and demand, economic conditions, and property characteristics. It assumes that both the buyer and seller are knowledgeable and acting in their own best interests, with enough time to consider their options.

By emphasizing a competitive and open market, this definition highlights the importance of an environment where multiple buyers and sellers interact, thus driving the price to a level that represents true market dynamics. This encompasses a sense of realism in property transactions, ensuring that the valuation is grounded in actual market conditions rather than hypothetical scenarios or outdated figures.

The incorrect options provide contrasting concepts. For instance, averaging the price of similar properties would not necessarily reflect the dynamics affecting a specific property's sale, and the highest sale price recorded may not be indicative of current market realities. Similarly, relying solely on an online property valuation tool can lead to inaccuracies, as these tools often lack the depth of analysis required to account for all the variables affecting a property's value in a specific market context.