Explain the concept of "market value."

Market value refers to the estimated price at which a property would sell in a competitive market, assuming both the buyer and seller are well-informed and acting in their own best interests. This concept takes into account various factors that influence property pricing, including comparable sales, market conditions, and the specific characteristics of the property itself.

In a competitive market, the market value reflects what buyers are willing to pay based on supply and demand dynamics. It encompasses the idea that the property's price is determined by real-world transactions and not just theoretical valuations. This is crucial because it provides a realistic expectation for both sellers and buyers regarding the profitability or affordability of a property.

While the other choices can relate to property value, they do not accurately capture the essence of market value. For instance, a private sale could lead to a price that might not accurately reflect broader market conditions. Similarly, the assessed value set by local governments often serves property tax purposes and may differ significantly from what the market would actually bear. Buyer sentiment can influence prices but does not directly define market value in an unequivocal manner. Thus, the correct understanding of market value lies in its alignment with the competitive dynamics of the real estate market.