What is the difference between Market Value and Market Price?

Market value is the price at which any asset would sell in an open, competitive auction

When licensed appraisers who are working under the auspices of USPAP to report on market value for real estate they are required to include an analysis of the highest and best use of the subject property

Market price is the price at which any asset is offered for sale in its marketplace

Most marketplaces do not have the characteristics of an open, competitive auction but display inefficiencies

Practically, in most instances, Market Value and Market Price will not be the same

However, if conditions of perfect markets, rational expectations and economic equilibrium exist market value and market price will be the same

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