Everything is worth what its purchaser will pay for it

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Everything is worth what its purchaser will pay for it
By Scott Rogers • December 16, 2010 Filed In: analysis, appraisals, financing, market
Stretch back to the 1st century BC, we find the following familiar quotes from Publilius Syrus, a Latin writer of mimes (thanks for the tip, Dave!): Never find your delight in another's misfortune. A rolling stone gathers no moss. Every day should be passed as if it were to be our last. No one knows what he can do till he tries. Another, which provides an interesting perspective on modern day appraisal practices is "Everything is worth what its purchaser will pay for it." While this may have been a prevailing theory at the time, modern day appraisal practice takes a bit of a different stance, more along the lines of "Everything is worth what someone else recently paid for something similar." For example.... if three fine homes have recently sold for $325k, $330k and $335k, we'd probably all agree that a fourth similar home is probably worth around $330k. But what if it a buyer and seller agree to a sales price of $345k? The appraisal is likely going to come back low, closer to $330k. But despite Past Buyers #1, #2 and #3 paying around $330k, if Current Buyer #4 wants to pay $345k, doesn't that mean that it some ways the house is indeed worth $345k?? Receive updates from HarrisonburgHousingToday.com via e-mail: Enter your e-mail address: Recent Articles: If Your Basement Wall Has A Crack You Should Definitely Buy A Crack Monitor Monthly Housing Cost for Median Priced Home Climbs Further in 2019 Issues Affecting Harrisonburg in 2020 and Beyond 50 Largest Employers in Harrisonburg Rockingham MSA Lower Priced Market Segments See Largest Swings In Housing Inventory 20 Year History of Harrisonburg Area Median Home Sales Price 20 Year History of Harrisonburg Area Home Sales More Homes Sold... More Quickly... at Higher Prices in 2019! When Will Home Buying Activity Ramp Up in 2020? My Predictions for the 2020 Real Estate Market
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 Jan 26, 2020 (unless otherwise noted).
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