is predicated on the following assumptions with respect to real estate, a real estate transaction, and the parties to a real estate transaction:3
2N. F. Allison, and R. Brown, Encyclopedia of Real Estate Appraising, Fourth Edition (Englewood Cliffs, New Jersey: Pren tice Hall, Inc., 1984), 6.
1. The market value is the highest money price for which the property is likely to sell in a competitive market.
2. Both buyer and seller are typically motivated, so that price is not affected by undue stimulus.
3. Both parties to a transaction act prudently and knowledgeably, and have knowledge of the various uses avail able for the property in question.
It is important to note that market value in real estate is based, in large part, on the highest and best use doctrine.4 This doctrine is interpreted to mean the
. . . reasonable and probable use that will support the highest present value . . . . Alternatively, that use, from among reasonably pro
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