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What is market value?

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Real Estate Professional | 23 Dec 2014, 09:06 AM Agree 0
Most agents will agree that market value is whatever a buyer is willing to pay for a property, but one real estate veteran says that couldn’t be further from the truth.
  • Larry | 24 Dec 2014, 11:52 AM Agree 0
    So how do you determine market value when you do a listing presentation? If you came into my house for a listing presentation without comparables in my neighbourhood, I would throw you out. If you came in with comparables and then told me my house is worth less because that is not the "market value" I would also throw you out.
  • Think Diamonds | 24 Dec 2014, 04:06 PM Agree 0
    The difference in meaning between Market Value and Market Price is clear; using them as if they are interchangeable terms is what causes confusion. The numerical difference between the two must take into account the context of the market. To say something is "overvalued" while ignoring supply and demand just adds more confusion.
  • Jay | 24 Dec 2014, 07:17 PM Agree 0
    The current supplies and the demands decide the market value of the products, no matter what commodity whether its housing, canola oil, gold, gasoline, or cocaine. It’s people who decide market value and not bricks and mortars or its geographic location. Any particular personal choice or emotional attachment will be lost as an odd boll (Red Herring)
  • Dianne | 28 Dec 2014, 03:34 PM Agree 0
    Special buyers pay premiums to acquire properties. It is unfortunate that the sales we use as comparables to determine a market price for a property, do not disclose if the sale was made to a special buyer. Therefore all the sales price becomes the sales value.
  • Lily | 28 Dec 2014, 09:46 PM Agree 0
    I so agree with you, with the market the way it has been going for the last few years, market value is confusing. However, you do have to have done your homework and be prepared to have a from $------ to $------. But if the property sells for a higher price, it is then the market price, but not necessary the market value, cause if the market takes a hit, then things change. I believe that the person who establishes the market value of a property is the one that puts an offer on it and the vendor that accepts it.
  • kuniter | 05 Jan 2015, 10:45 AM Agree 0
    I agree with Lebow. A few offers from subjective interests in the property doesn't determine the market value of that particular asset. In Florida, USA, property values are driven by recently sold similar properties...a subjective comparison that misleads market values. A sudden market event will change that perception.
  • e. Harold | 05 Jan 2015, 05:41 PM Agree 0
    Realtors upset values by their rush to earn exhorbitant fees for little work - ' I have other people coming tomorrow and they're hot, they've missed out on this type of home 2 x now; may I place your bid in sooner ?? ' - what a crock !
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