How is market price defined in real estate?

Market price in real estate is defined as the amount actually paid to acquire a property during a transaction. It reflects the price that a buyer agrees to pay and a seller agrees to receive in a given market at a specific time. This is based on the negotiation between the buyer and seller and can be influenced by various factors such as the property's condition, location, and current market conditions.

The appraised value of a property is typically an estimate provided by a professional appraiser and might not always align with what buyers are willing to pay. Estimated values based on market trends or average sale prices in a neighborhood give context to worth but do not represent the specific price a buyer will ultimately pay. The market price encapsulates all these elements but is distinctly the final agreed-upon currency exchanged in the transaction.