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The market price is the price that someone actually pays for a product or service in a specific market or area. In the context of real estate, it refers to the price that a buyer actually pays for a property that generates income, such as rental income.
Let's say you have a small apartment building for sale. Two people are interested in buying it, and they both make offers. One person offers $200,000 and the other offers $210,000. If the owner accepts the $210,000 offer, that becomes the market price for the apartment building.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
In a land where houses grow,
There's a price you ought to know.
Market Price is what we call,
The money paid when houses fall
Into hands of those who buy,
A home or building reaching high.
A buyer pays for all they seek,
From tiny huts to mansions sleek,
The Market Price, oh yes indeed,
Is what they pay for that property.
So when a buyer and a seller agree,
The Market Price is plain to see!