Contracts
What is a 'listing price' versus 'market value' and how do they interact in Illinois real estate?
AThey are identical; the listing price always equals market value
BThe listing price is set by the seller (often with agent input); market value is the price the property would likely sell for; they may differ significantly✓ Correct
CMarket value is set by IDFPR; the listing price is set by the seller
DThe listing price must be within 5% of the appraised market value in Illinois
Explanation
Listing price is what the seller asks for the property; it is set by the seller, ideally informed by the agent's competitive market analysis (CMA). Market value is the price a knowledgeable buyer would likely pay in the current market. They may differ—overpriced listings sit on market; underpriced listings attract multiple offers. In Illinois, buyers and lenders ultimately determine market value through offers and appraisals, not the listing price.
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