Maybe I’m confused but to me market value is the price someone is willing to pay for something. So if a pack of gum is 99c then thats probably about the most that most people are willing to pay for it.
So when I see RE ads say 20K under market value I have to say to myself “how is it under market value when it still isnt selling at the reduced rate”? If it was market value than people would be paying that price for it, right? Its just an extremely overpriced home. Again its only worth what someone is willing to pay for it.
I wouldn’t pay $3 for a 99c pack of gum. My rent is cheap and in my mind a nice 3 bed 2 bath home in a good area of SD is worth no more than $250k so thats the price I will be holding out for.
I agree with your “market value” comment. They are priced below last summer’s market value. So they should say “Priced below last summer’s market value, but priced $10K above today’s market value” if they were honest.
I am holding out for a 50% drop in real estate.
And owning a house isn’t really all it’s cracked up to be. This is my conclusion after 15 years of owning 3 different homes, and then renting 2 homes over 3 years. I am a happy renter.
Me too! But I know it won’t last too long… I can’t paint the walls without asking, I can’t get rid of the awful deck, and I don’t want to make too much of an effort on the yard.
Conversely, I like not giving a damn about when the roof needs to be replaced, or if the fridge will hold out another year or so. If something goes wrong, I’ll just call the landlord and let them fix it. If I get fed up, I’ll move and it won’t cost me an arm and leg to do so.
Right NOW, I’m a happy renter. As time passes, I’ll be a happy house hunter. 🙂
As a former appraiser, Market Value is mostly determined by guaging what a similar property in the area has sold for recently, i.e., comps. But what most people don’t get is that if some dumb sucker paid too much for the house down the street similar to yours, which is really at market value? People have all kinds of reasons why they will pay more for one property and not another, school district, back yard, pool, tile color – some people can see past cosmetic differences and find diamonds in the rough, some have to have their house perfect for them, they do not want to do any cosmetic fixes to perfect the house. I don’t think personally you can determine market value so closely that you can say accurately that the house is “$20,000 below market value”, but rather “$20,000 below recent comps.”
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