An appraiser will doubtless correct me, but my understanding is that this home CANNOT be a “comp” because the sale is too old. It should expire at some point, and I believe that expiration may be 6 months. Not 100% of the exact details…
The only reason I sold my house is because I priced it at market value. My buyers got a 5% discount off the summer’s price, citing a “softening market” in their offer letter.
If I were to list that house today, I would have to lower it even further. So your statement that my house was “overpriced” is incorrect. It was priced at the market price, and that’s why it sold.
I believe that every home listed at market value will sell. The people not selling are priced too high, and need to lower their price.
Telling them to lower is actually helping the seller. You see, if they don’t lower their price, they will chase the market down, and end up getting less than if they just priced it right today. As the market price keeps moving downward, sellers have to keep lowering their prices.
My suggestion noted above is helpful to both buyer and seller.
As far as whether the market price is equal to the intrinsic value: not, it is not. I have tossed this around with the appraisers on this forum, and there isn’t much you can do about it. Houses and stocks are sold on market value, not fundamentals or intrinsic value.
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