What is the term for the highest price a buyer is willing to pay for a property?

The term that refers to the highest price a buyer is willing to pay for a property is known as market value. Market value represents an estimate of what a property could sell for in the current market, based on various factors such as location, condition, comparable sales, and buyer interest. It reflects the price point that both buyers and sellers agree is fair, considering the prevailing market conditions.

In real estate, understanding the market value is essential because it can help determine appropriate pricing strategies for both buyers looking to make offers and sellers aiming to list their properties competitively. This term encapsulates the principles of supply and demand within the real estate market, indicating the strength of the market at a given time.

While appraised value relates to the professional assessment of property worth, listing price refers to the price set by the seller when putting the property on the market. The offer price is typically the specific amount a buyer proposes to pay, which may or may not align with their perception of market value. Each of these terms has specific implications in real estate transactions, but market value specifically denotes the maximum price a buyer considers reasonable for a property.