The concept of market value is central to the property valuation profession world-wide. While the valuers themselves still remain hugely influential in the market, there is increasing evidence of widespread scepticism about their skills. This article engages with the question why valuers remain important despite the parlous state of their craft. Using insights provided by transaction cost theory, this article argues that market value, as a knowable, determinate and autonomous figure, does not exist because market conditions necessary for its emergence are not found in reality. To account for the continued importance of valuers, the article proposes an alternative theory of market value, one which emphasises its role as a transaction-cost-minimising device.
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