EAQE Property valuation question: internationally accepted definition of market value

Answer: B. What a willing buyer and willing seller would agree at arm's length on the valuation date

Answer: The estimated amount a willing buyer and willing seller would agree on the valuation date, at arm's length, after proper marketing. Why not the others: - Original price plus inflation: Historic cost is not market value; markets move independently of inflation. - The highest single offer: One bidder's offer may be special or uninformed; market value assumes knowledgeable, prudent parties. - Loan amount divided by LTV: Lending figures derive from a valuation; they do not define it. Rule: Market value is the estimated amount for which a property should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction after proper marketing, each acting knowledgeably, prudently and without compulsion. Source: International Valuation Standards; EAA, A Study Guide to Estate Agency Law and Practice, Part 6, para 5; as at Oct 2026