Which term is defined as the most probable price in terms of money which a property should bring in a competitive market & open market?

• A. Market value
• B. Market price
• C. Market cost
• D. Utility

Answer: (B)

Understanding what a property should bring in a competitive, open market is about the price that would actually change hands under those conditions. That is market price: the real-world amount buyers are willing to pay and sellers are willing to accept in an arm’s-length sale. This term focuses on the transaction price that market participants would likely settle on in an active market.

Market value, by contrast, is an estimated amount the property should bring under normal marketing conditions, typically serving as an opinion of value rather than the exact price a sale will occur at. Market cost isn’t a standard valuation term in this context, and utility speaks to usefulness or satisfaction from use, not price.