Texas · Chapter 07 of 44

The Concept of Value

Market value vs. market price, characteristics of value (DUST), principles of value, highest and best use, and economic principles affecting value.

25-minute read · Built for the TREC Sales Agent Exam

market valuemarket priceDUSTdemandutilityscarcitytransferabilityhighest and best usesubstitutionconformityanticipationcontributionsupply and demandprogressionregression

Market Value vs. Market Price

MARKET VALUE is the most probable price a property would bring in an arm's length transaction between a willing buyer and willing seller, both informed, neither under pressure. This is what appraisers estimate. MARKET PRICE is what a property actually sold for. The two often differ; the actual sale price can be above or below true market value.

Loading…