Which statement best distinguishes market value from market price?

• A. Market value is an actual price; market price is the expected price.
• B. Market value is the price paid at closing; market price is the price asked by the seller.
• C. Market value is an expected price; market price is the actual amount the property sold for.
• D. Market value and market price are the same under all conditions.

Answer: (C)

Market value is the estimated amount a property would bring in a competitive market on a given date, reflecting what a willing buyer and seller would typically agree to under normal conditions. Market price is the actual amount that a property sells for in a specific transaction. So, market value is an expected, appraisal-like estimate, while market price is the real price realized when the deal closes.

In practice, they can differ. A home might be valued at around 350,000 based on comparables and market conditions, but if a sale closes for 365,000 because of bidding, favorable terms, or urgent needs, the market price is 365,000 while the market value remains the assessed or estimated figure.

The other statements mix up these concepts: market value is not the actual closing price, market price is not simply the price asked by the seller, and they are not always the same under real-world conditions.