Final answer:
Market value is determined by supply and demand in the open market, representing the price a willing seller would accept and a willing buyer would pay, given that both parties are well-informed and not under compulsion to trade.
Step-by-step explanation:
The concept of market value in real estate refers to the most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale. This concept assumes that buyers and sellers are reasonably knowledgeable, acting in their own interests, and not under undue duress. The correct answer to the question regarding market value is d) The value based on supply and demand in the open market.
Market value is determined by factors such as the property's condition, location, and the current state of the market, which affect the supply and demand. This is the price that a willing buyer is likely to pay and a willing seller is likely to accept, presuming both parties are well-informed and under no pressure to trade. It can be contrasted with investment value, which is specific to an individual investor based on their own requirements, expectations, and finance costs, and transaction value, which is the price actually paid or received for a specific property.