Real estate prices in a current market situation are determined by the market price and the market value. The Market price is what a willing, ready and bank-qualified buyer will pay for a property and what the seller will accept for it. While the Market value is an opinion of what a property would sell for in a competitive market based on the features and benefits of that property (the value), the overall real estate market, supply and demand, and what other similar properties have sold for in the same condition. The major difference between market value and market price is that the market value, in the eyes of the seller, might be much more than what a buyer will pay for the property or it’s true market price. Value can create demand, which can influence price. But, without the demand function, value alone cannot influence price. As supply increases and demand decreases, price goes down, and value is not influential. As supply decreases and demand increases, the price will rise, and value will influence price. Market value and market price can be equal in a balanced market.