What is meant by market price?

Market price refers to the actual price paid for a property during a transaction. It represents the culmination of various factors, including the property's condition, the current real estate market demand and supply, and the negotiations between the buyer and seller. When a transaction is finalized, the market price reflects what a buyer was willing to pay and what the seller was willing to accept, making it a practical indicator of the property's value in real-world conditions.

In contrast, options discussing theoretical or estimated values do not capture the real economic exchange that occurs in a sale. Theoretical value might reflect what an appraiser believes a property is worth based on certain conditions, while an estimated price before negotiation suggests a hypothetical figure rather than the concrete transaction that actually takes place. The average price of similar homes provides context for value but does not equal the market price for a specific property being bought or sold.