Price Versus Value ? Define Value.

[Terrel L. Shields]

Price is what dummies pay for new construction homes

In my part of the world, buy new and expect to resell higher unless you custom build some monstrosity.

 

[ZZGAMAZZ]

It is probably best you are not an appraiser!

Funny funny. I saw the post and figured that it was from Fernando...and then a moment later Fernando give it a LIKE...

 

[ZZGAMAZZ]

"The value" or the appraised value is what I'm assuming you're referring to since the question is asked of us as appraisers, is our estimate or opinion of what a property is worth. To determine the appraised value, we look at historical closed sales which most weight is placed on as well as pending and active sales in the immediate market area to support our opinion.

The factors include location, construction (year built, style) GLA, bed, & bath count, features, blah blah, etc. We slog through this supposedly to help the lender gauge the risk on making a sound lending decision. And.... to make sure the buyer doesn't financially "over commit" (which doesn't work BTW).

"The price" is the actual amount the property sells for to a supposedly informed buyer who is not being duped by their realtor. Again, current market conditions, demand, and how many parties do they have to out bid.

If the "appraised value" and the "contract price" differ.... this puts a big stick in the spokes and makes everybody "unhappy". Disgruntled realtor calls, stips, and ROVs ensue....

If the appraised value matches the contract price.... winner winner chicken dinner..... everybody's happy! This is "the price".

The End

Don't necessarily agree with your definition of "price" in paragraph 3; it is what it is without any qualifying factors. [but hope not to argue because it's a not easy to be philosphical and hongry both at the same time.]

Reminds me [like everything reminds me of something else....] sitting in a graduate level philosophy class couple of decades ago when this wild-haired liberal professor yells out to the class, "Do you have any idea what it would be like to be a black man in America today?" Likeable 50-something Dr Dennis F raises his hand and says, "I wouldnt' mind being Denzell for a couple of weeks!!!!" Same student required to provide a report on his or her favorite philosopher. He picked Leo Durocher!!!!!!!!!!!!

and speaking of value vs price....I wasn't sure whether to capitalize "black man" .....

 

[djd09]

it is interesting...that the biggest investment of a persons life...and there aint a lawyer involved

 

[ZZGAMAZZ]

it is interesting...that the biggest investment of a persons life...and there aint a lawyer involved current trend at least in CA is to replaces real estate agents with lawyers, although that cant pissibly reduce sellers n buyers commission fees...

 

[Fernando]

Funny funny. I saw the post and figured that it was from Fernando...and then a moment later Fernando give it a LIKE...

Glad I didn't disappoint you.

 

[ZZGAMAZZ]

Glad I didn't disappoint you.

HA HA HA. Literally, never! Remember that I'm the guy who often thinks about your comments for days n days until one day either sitting in terrible traffic [or perhaps sittin on the pot] I have an epiphany by extrapolating the wisdom of one of your comments to address a real-life scenario. In fact, I am available for an administrative position in the Fernardino's Fave Fan club--presuming that's it's a paid position....

 

[Fernando]

HA HA HA. Literally, never! Remember that I'm the guy who often thinks about your comments for days n days until one day either sitting in terrible traffic [or perhaps sittin on the pot] I have an epiphany by extrapolating the wisdom of one of your comments to address a real-life scenario. In fact, I am available for an administrative position in the Fernardino's Fave Fan club--presuming that's it's a paid position....

I'm glad my posts are not in vain.
I always hoped my posts at least with the MAGAs will make forumites think.

 

[ZZGAMAZZ]

I'm glad my posts are not in vain.
I always hoped my posts at least with the MAGAs will make forumites think.

Sir, unfortnately that's NOT an appropriate analogy. If anything your political posts support the MAGA perspective of the distinction between prudent idealology...and yours!!!!

 

[Fernando]

Sir, unfortnately that's NOT an appropriate analogy. If anything your political posts support the MAGA perspective of the distinction between prudent idealology...and yours!!!!

Somebody had to shake the MAGAs to their senses. You're welcome.