Which type of value represents an agreement between buyer and seller?

Market value is defined as the price that a property would likely sell for in a competitive and open market. It represents a consensus between buyers and sellers on what a property is worth, determined by the current conditions of the real estate market, comparable properties, and other economic factors. This value is dynamic and can fluctuate based on changes in demand, supply, interest rates, and the overall economic climate.

In contrast, assessed value is determined by tax authorities for property taxation purposes and does not necessarily reflect what buyers are willing to pay. Investment value refers to the specific value of a property to a particular investor, which may differ from market value based on that investor’s unique circumstances and goals. Depreciated value represents the decrease in value of a property due to wear and tear, obsolescence, or other factors, and does not represent a mutual agreement of worth between potential buyers and sellers. Thus, market value is the most accurate term when discussing the mutual agreement between a buyer and seller regarding a property's worth.