Market value, as used herein, is defined in Chapter 12, Code of Federal Regulations, Title 12, Part 34.42(g) as:
The most probable price which a property should bring in a competitive and open market, under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus.
Implicit in this definition is the consummation of a sale of a specified date and the passing of title from seller to buyer under conditions whereby:
(1) buyer and seller are typically motivated;
(2) both parties are well informed or well advised, and each acting in what they consider their best interests;
(3) a reasonable time is allowed for exposure in the open market;
(4) payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and
(5) the price represents a normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
Fee simple estate is defined in The Dictionary of Real Estate Appraisal, 6th Edition, 2015, by the Appraisal Institute as:
Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.
Leased fee estate is defined in The Dictionary of Real Estate Appraisal, 6th Edition, 2015, by the Appraisal Institute as:
The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires.
Market Rent is defined in The Dictionary of Real Estate Appraisal, 6th Edition, by the Appraisal Institute as:
The most probable rent that a property should bring in a competitive and open market reflecting the conditions and restrictions of a specified lease agreement, including the rental adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (TIs).