Market value is the price at which the buyer is willing to buy, and the seller is willing to sell, in a market that is fair and open. In other words, market value is an acceptable and fair price for a given item in a given market. In a legal sense, market values are used to appraise goods.
Market value can be used for a number of different goods in a number of different industries. For example, a real estate agent may advise a property seller to list a price for the property that is similar to the market value of the property. Similarly, a person offering up a car as collateral for a loan may have the loan amount dictated by the market value of the car. Essentially, market value is a way to determine a fair price for goods.