Understanding the difference between private and public markets is a useful tool in evaluating real estate transactions. Public markets are those in which small homogeneous units of ownership trade over a public exchange (such as the stock market). They are highly liquid and transaction prices are transparent to the public. In contrast, private markets are those in which assets are sold between individual buyers and sellers. The pricing in private markets is less transparent, the transaction costs are higher, and they are generally less liquid due to the high amount of capital required for each transaction. Observing prices in the private market is more difficult because each transaction is unique and typically not sold frequently. Therefore, trends in prices over time are difficult to observe and asset values in private markets don’t incorporate information as quickly as public markets do (Elizabeth Attubato, 2019)