What does market price refer to?

Market price refers specifically to the price at which an individual property is actually sold in the real estate market. It can fluctuate based on various factors such as demand, location, property condition, and current economic conditions. This price is determined by what buyers are willing to pay and what sellers are willing to accept, reflecting the current state of the market at a specific time.

In contrast, average value relates to a general assessment of properties within a certain category or area, providing a broader perspective but not reflecting the specifics of an individual sale. Theoretical value involves estimated worth based on appraisal or economic principles, which may not align with what buyers are realistically willing to pay in practice. Historical price pertains to past sales figures, which may not accurately represent current market conditions or the current value of a property. Understanding market price is crucial for making informed decisions in real estate transactions, as it reveals actual trading dynamics rather than theoretical or historical concepts.