What is Market Value? Market value is a widely accepted basis of valuation.

Our Malaysian Valuation St andards (MVS) define Market Value as the estimated amount for which a property s hould exchange on the date of valuation between a willing buyer and a willing se ller in an arm s-length transaction after proper marketing wherein the parties had e ach acted knowledgeably, prudently and without compulsion. The above definition is adopted from the International Valuation Standards (IVS) , which have been adopted or recognised by many valuation institutions and finan cial bodies around the world. Other than standards, the definition of Market Value can also be found in some o f the landmark cases. For example, when presiding in Nanyang Manufacturing Co. v The Collector of Land Revenue, Johore (1954), the learned Judge Buhagiar define d Market Value as follows: "the price which the owner is willing but not obliged to sell would expect to ob tain from a willing purchaser with whom he was bargaining for the sale and purch ase of the land." He went on to say that this price is best illustrated by comparing the sales of land in the vicinity of the subject land, which are similar in terms of size, la nd use, terms of title, shape etc. Many subsequent Court cases made reference to Lord Buhagiar's definition. The above definitions would have briefly defined Market Value. Nonetheless, in o rder to truly understand its essence, one has to appreciate the meaning of the f ollowing keywords and phrases found therein: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) estimated amount; willing buyer; willing seller; arm's length transaction; proper marketing; knowledgeably; prudently; without compulsion. the price; willing but not obliged to sell; expect to obtain; willing purchaser; bargaining, and sale and purchase.

A thorough understanding of each of the keywords and phrases is a pre-requisite for a professional valuation.