What are the differences between:

• Listing Price,
• Estimate of Market Value,
• Market Value,
• Selling Price,
• Appraised Value, and
• the price you would pay for this property. 

At the heart of these terms is the concept of market value is and while the definition differs a bit depending on who is using it, market value is, "The most probable price at which a property will sell:

1. in a competitive and open market under conditions requisite to a fair sale, with
2. the buyer and seller each acting prudently and knowledgeably, and 
3. a reasonable time is allowed for exposure in the open market; and, where
4. payment is made in cash and the price is unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."

The selling price of a property does not necessarily reflect market value...

• A buyer or a seller might be acting under pressure of some sort - e.g. a job transfer.
• A buyer or seller might not be equally knowledgeable.  Knowledge or the lack of it, can produce an uneven playing field.
• The price might reflect special financing, allowances for paint or flooring, or some other consideration.

The appraised value may not reflect the market value because real estate appraisals look back in time, focusing on historical sales information and estimating value today or some specific date in the past. In a rising market most real estate appraisals will lag a bit behind increasing property values.

The estimate of market value usually includes not only historical information but also a Realtor's opinion of how a changing real estate market will affect the selling price.

And while the listing price may reflect the estimated market value of a experienced Realtor, it might more closely reflect the personal opinion of the seller. More...

In the end, the price you might be prepared to pay for a property might be different from all the above. If you place particular value on some feature of the property (schools, a garage, a location near family or friends), you might be prepared to pay more than market value. On the other hand if you find some aspect of the property to be very unsatisfactory, the price you would be prepared to pay might be significantly less than market value. A professional Realtor is called upon to set aside his or her personal opinion and consider the market value of a property.

When you are looking at any property, it's worthwhile to momentarily set aside your own personal opinion and consider, "What actually is a  realistic market value for this property?"  The value of this exercise is that it offers the first look ahead towards the day you want to sell - and the expectations you will have at that time - the value you would want to realize.