The principle that dictates the value perception of a property based on the average expectations of buyers in the market is called:

The concept that determines a property's value based on the average expectations of buyers in the market is known as market value. Market value reflects what a typical buyer is willing to pay for a property under normal conditions. This value is influenced by various factors, including location, economic conditions, comparable sales, and buyer expectations.

Market value is grounded in the idea that values are determined by the interactions between buyers and sellers, and it serves as a benchmark for appraisals, sales, and property assessments. Understanding market value is crucial for appraisers, as it provides insight into current market trends and buyer perceptions, ensuring that property valuations are consistent with market realities.

The other options do not encapsulate this principle as accurately. Appraisal equivalence does not address buyer expectations directly, marketability refers to how easily a property can be sold, and buyer-seller dynamics focus on the interactions between these parties without specifically addressing the broader concept of value perception in the market context.