The market price of a property would be best defined as:

• A. The appraisal value
• B. The listed price
• C. The amount paid to obtain the property
• D. The mortgage amount

Answer: (C)

Market price is the actual amount paid to obtain the property in a transaction between a willing buyer and a willing seller. It reflects the negotiated price that ends up being exchanged, not necessarily the seller’s asking price or the appraised value, and it isn’t the financing amount. The appraisal value is an estimate of value, the listed price is what the seller asks for, and the mortgage amount is the loan financing used to complete the purchase. In practice, the market price is the price that the buyer and seller agree to and actually pay.