Final answer:
The theoretical price a property would sell for in a typical transaction is known as the market value, indicating what buyers are willing to pay based on various factors such as local real estate trends and economic conditions.
Step-by-step explanation:
The theoretical price a property would sell for in a typical transaction is known as the market value. The market value is influenced by several factors, including median sales prices of local properties, local housing market trends, and general economic conditions. For instance, Freda's house, which was purchased for $150,000, now has a potential selling price of $250,000, indicative of an increase in market value. Ben's scenario also reflects a rise in market value from the original purchase price of $100,000 to the current value of $160,000, despite him having paid off $20,000 of his bank loan.