What is the primary difference between market value and assessed value?

Market value is defined as the most probable price that a property would bring in a competitive and open market under normal conditions. It reflects the price a buyer is willing to pay and a seller is willing to accept, considering the property's characteristics and current market conditions.

In contrast, assessed value is determined by a public tax assessor for tax purposes and is not necessarily reflective of the current market conditions or actual sale prices. It is typically based on various factors, including the property's size, location, and improvements, but often uses standardized methods or formulas that can differ from actual market evaluations.

Therefore, option C correctly captures the essence of market value in that it directly correlates to the willingness of a buyer to pay for a property, making it a crucial metric for both buyers and sellers in real estate transactions. This understanding is essential for appraisers and real estate professionals as it guides evaluations and market analyses.