Final answer:
The term in question refers to the 'fair market value' of a property which is the estimated price it would fetch on the open market under normal conditions where both buyer and seller act without duress and with adequate time and information.
Step-by-step explanation:
The term described in your question refers to the concept of fair market value (FMV), which is prevalent in real estate and business valuation. The fair market value is the price that a property or business would sell for on the open market, given that both the buyer and seller have reasonable knowledge of the facts, are willing and unpressured to transact, and have the liberty to take their time. This concept assumes that the market where the property is offered for sale is a competitive one, the sale is a financial transaction (as opposed to a trade), and the marketing period is adequate enough to attract buyers.
In practical terms, the fair market value of a property is often estimated by real estate appraisers who consider several factors including comparable sales of similar properties, the property's condition, location, and current market trends. For instance, if a house that is similar in size, location, and amenities to others in the neighborhood is expected to sell for around $300,000, that can be taken as its FMV, provided it was on the market for a typical amount of time and no unusual circumstances influenced the sale.