In real estate, market price refers to the actual price paid for a property in a completed transaction, without regard to the motivations, pressures, or level of information possessed by the buyer or seller. It represents a historical fact rather than an opinion or estimate.
Market price may differ from concepts such as market value, which assumes typical conditions and informed parties. Because it reflects what was actually paid, market price can be influenced by unique circumstances, including urgency, special financing, or unequal bargaining power, even if those factors are not evident from the transaction itself.
