What is market value?


What is market value?
By Scott Rogers • September 22, 2008
I received a call the other day from a Realtor who was representing the seller of a house that I had showed to some of my buyer clients. I was informed that "the owner just had the house appraised, and the appraisal came in $20,000 above the asking price." I believe the conclusion that I was supposed to come to was that the house was a great deal, even at the asking price. This all started me thinking about the many ways that a value of a house can be defined. I would argue that the value of a home is NOT (necessarily): how much the owner paid for the house how much the owner paid, plus the value of the owner's improvements to the house the tax assessed value of the house the appraised value of the house how much the neighbor's house sold for a year ago how much the neighbor's house sold for yesterday how much the owner needs to sell the house for in order to pay off a mortgage how much the owner needs to sell the house for in order to buy their next home A house is worth what a buyer can and will pay for it, in the current market. Certainly, this is a bit ambiguous, but my main point is that we can't make any assumptions about what the market value is of a house. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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