What is the term for the value of a building at the time of sale?

The value of a building at the time of sale is referred to as market value. This term represents the price that a property could likely sell for in the open market under normal conditions, where both the buyer and seller are reasonably informed and not under any pressure to complete the transaction. Factors influencing market value include comparable sales, the condition of the property, and current market conditions.

Terminal price typically refers to the valuation of an asset at the end of a certain period, often in financial analyses related to cash flows, rather than the specific value at the time of sale. Appraised value is determined by a professional appraiser and can differ from market value, as it involves specific criteria and methodologies that may not account for real-time market dynamics. Investment value represents the worth of a property to a particular investor based on their individual circumstances, which can differ from the market value due to personal motivations or investment criteria.

Understanding these distinctions is essential for anyone involved in real estate transactions, as knowing the concept of market value aids in making informed buying or selling decisions.