What is the nature of transaction price in real estate?

The nature of the transaction price in real estate refers to the actual price that is paid for a specific property in a real estate transaction. This is the final agreement reached between the buyer and seller after negotiations, taking into account various factors such as market conditions, property condition, and local demand. The transaction price is a concrete figure indicating the monetary exchange that occurred at the time the deal was closed, which is critical for both buyers and sellers as it reflects the agreed-upon value of the property at that moment.

In contrast, estimated price refers to an appraisal or market analysis that predicts what a property could sell for based on comparable sales or other metrics. The price negotiated by a bank generally pertains to financing terms or the amount they are willing to lend, which does not directly represent the transaction between the buyer and seller. Projected market value focuses on predictions about what a property could be worth in the future, which again is not the same as the transaction price that reflects the actual sale.