Which valuation reflects the amount a buyer is willing to pay for a property?

The concept of subjective value is grounded in the principle that the worth of a property is determined by individual buyer perceptions and personal circumstances. This valuation is highly personal and varies from one buyer to another, influenced by factors such as emotional attachment, the perceived utility or enjoyment of the property, market trends, and unique buyer needs.

While appraisal value represents a professional assessment of value based on standardized methods and market data, it does not capture the personalized willingness to pay that is characteristic of subjective value. Assessed value pertains to the valuation performed by taxing authorities for property tax purposes, which often bases its calculations on different criteria. Tax value is similar, generally reflecting the assessment for taxation rather than the market perception of value.

Thus, the correct answer emphasizes that the subjective value embodies the individual buyer's willingness to pay, showcasing a personal appraisal that reflects their specific desires and situations in the property market.