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: How Is Coronavirus Affecting How Many Buyers Are Buying Homes In Harrisonburg, Rockingham County? And Where Do The Buyers Work And What Do They Do? Some Segment Of Home Buyers Will Not Be Able To Buy For A Time Careful What You Say While Touring A House For Sale Is Social Distancing Keeping Buyers From Buying Houses In Harrisonburg? Should I Buy A Home Now? Should I List My House For Sale Now? It Is A Great Time To Virtually Walk Through A Home Buying When Needing To Sell But Only If You Can Buy But After You Sell Sorting Through Multiple Perspectives On Home Value
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 Apr 04, 2020 (unless otherwise noted).
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