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: The Floor Plan Or Layout Of Your House Can Make Or Break The Sale How To Run The Numbers On Upgrading To A New Home Detect A Leak At Your Water Heater (sump pump, etc) Before It Causes Major Damage Preparing To Sell? A Messy (aka normal) House Is Just Fine When We Meet! You Might Not Want To Spend As Much As You Are Qualified To Spend On A Home How To Measure The Square Footage Of Your Home Perhaps Unsurprisingly, Most Harrisonburg Short Term Rentals Are Near EMU, Downtown or JMU Why Is This Home Being Sold In AS IS Condition? How To Count Bedrooms In A House Cumulative Contract Activity Pulls Ahead In 2020
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 Aug 07, 2020 (unless otherwise noted).
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