What does the term "market value" signify?

Market value refers to the most probable price a property would realistically sell for in the open market, given a set of circumstances often referred to as "the typical buyer and seller." This involves assessments of what buyers are willing to pay and sellers are willing to accept in a competitive environment, reflecting the property's condition, location, and market dynamics.

It's essential to understand that market value is not merely a subjective opinion of what a seller thinks their property is worth, but rather a consensus achieved through market activity. It incorporates comprehensive analysis of comparable properties, current market trends, and economic indicators that affect supply and demand.

While the other choices touch on related concepts, they don’t accurately define market value in the same way. For instance, the idea of a price a property should sell for emphasizes an ideal rather than the realistic transaction context. The maximum price in a bidding war represents an inflated scenario where emotions and competition might skew the actual value. Lastly, the average price of all properties fails to account for the individual characteristics that contribute to the specific market value of a property. Hence, option C comprehensively encapsulates the essence of market value.