In appraisal, what term describes the actual price a buyer is willing to pay for a property?

The term that describes the actual price a buyer is willing to pay for a property is known as "Market Value." This concept represents the most probable price that a property will bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller both acting prudently and knowledgeably. It is based on what buyers are prepared to pay and what sellers are prepared to accept, rather than an arbitrary figure set by any external entity.

Market Value is supported by comparable sales in the area, homeowner sentiment, and current economic conditions that influence buyer behavior. This makes it a dynamic and frequently changing figure, reflecting current market trends.

The other terms do not convey the same meaning. Assessed Value typically refers to the value assigned to a property by a government assessor for taxation purposes, which can differ from what the market dictates. Property Tax Value is similar and is often based on assessed value for tax calculation. Investment Value, on the other hand, refers to the value of a property from the perspective of an individual investor based on their specific circumstances and objectives, which may not align with market conditions.