What does "market value" represent in real estate?

Market value in real estate refers to the price a property is expected to sell for in a competitive market under normal conditions. It reflects what a willing buyer would pay to a willing seller, both fully informed and acting without any undue pressure. This concept encompasses the idea that the property's value is determined by the current market demand and supply dynamics, taking into account the unique attributes of the property as well as external factors affecting property values in that specific location.

The other options highlight different concepts: the initial listing price may not accurately reflect market conditions, as it can be influenced by the seller's expectations rather than current market dynamics. The assessed value set by local authorities is generally used for tax purposes and may differ significantly from current market conditions. Lastly, the amount a buyer is willing to pay can vary based on individual circumstances and emotions, which may not align with the broader market consensus on value. Thus, the correct understanding of market value is rooted in the competitive landscape rather than individual assessments or starting points.