Market value is the true value.  In most cases an appraisal isn't worth the paper it is printed on.  The value of any property is the figure the buyer is willing to pay and the figure the seller is willing to take.  If those two figures match that is the value.

I'm glad there is someone else that knows this! I'm tired of overpriced listings!

I agree the market value is more in line with what buyers are willing to buy and sellers are willing to take - but then what about those institutions and banks and lenders that in the short sale, foreclosure and other less than perfect deals - what are they looking at to get the deal moving forward,,, oh yes the A word. The market value always works in an all cash scenario - less people to give opinion of value - it is when the mortgage issue arises that more opinons are introduced and things get more spicy.

If the bank agrees with the buyer and the seller then you get a closing.  Otherwise you are still negotiating the contract.  An appraisal is always going to trump the "market" value.  In our current market the appraisals aren't coming in much higher than the sales price unlike a few years ago when they were all over the map.