Which term refers to the price for the individual property?

• A. Market Price
• B. Assessed Value
• C. Investment Value
• D. Property Tax Calculation

Answer: (A)

Market price is the price for the individual property—the amount a willing buyer would pay a willing seller in an arm's-length, competitive sale under typical market conditions. This price reflects current supply and demand and the property's specific characteristics, and is usually demonstrated by an actual sale. Assessed value is the figure used by local authorities to determine property taxes and often does not mirror current market conditions. Investment value is the price a particular investor assigns based on their own criteria and financing, which can differ from the market price. Property tax calculation relates to taxes and uses assessed value or statutory methods, not the sale price in the market.