What is indicated by market price in real estate?

Market price in real estate refers to the established sales price of a property determined through the negotiation process between buyers and sellers in the marketplace. It reflects the actual transaction price agreed upon during the sale and is influenced by various factors such as market conditions, property condition, and buyer motivation.

This concept is distinct from a predicted future sale price, which can be speculative and not necessarily based on current market dynamics. Similarly, the assessed value by the county serves primarily for tax purposes and may not accurately represent what a property would sell for in the open market. The average value of similar properties provides a benchmark or reference point, yet does not capture the unique circumstances of an individual property transaction. Therefore, what is most critical in this context is the market price reflecting the tangible and current outcome of a property sale.