What does the market price refer to?

The concept of market price refers to the current price that a buyer is willing to pay for a property at a given moment in time. This price reflects the interaction of supply and demand in the real estate market and can fluctuate based on various factors such as market conditions, property location, and buyer interest. Market price is essentially the actual transaction point during a sale, indicating that it is not merely theoretical or based on past prices, but rather the price agreed upon between willing buyers and sellers in the current market environment.

Understanding this concept is crucial for real estate professionals, as it helps in setting competitive listing prices and is integral to negotiations. The other options relate to broader concepts such as historical averages, seller's asking price, and government assessments, which do not capture the real-time dynamics involved in the market price.