And what if the home is priced $1,000's below 'market value' ?
Market Value is-
- The price the home-owner is willing to sell the property for
and
- What price a prospective home-buyer is willing to pay
If it is a cash transaction it is simple. The exceptions to the rules are
- When a mortgage is involved and the bank uses appraisals to determine the relative value of the home to comparable homes in the vicinity.
- The motivations of the buyer or seller. One example is. I may want $100k for my home but I may not want to close for 30 days so I can find a new place. Offer me $105 and I might consider moving out in 3 days.
The reason for this topic is that I was searching through listings and found numerous comments that say "below market value" I know what the statement is intending to say but it is not below market value if that is what the home is selling for. Additionally, I think it is a huge flag to potential buyer- "Make a Lower Offer, it is still over-priced and the seller is motivated to move.
Dream big in 2009,
Trey Langford
Founder