Episode 077 - Market Value vs. Market Price

Real Estate 101 exam question: Define Market value and market price, and explain the difference between the two. Just kidding! This isn’t a test.

In this episode B talks about what they are and how they are very relevant in today’s market. Knowing the differences can really help you on your next CMA and appraisal challenge.

 

SHOW NOTES

• 02:00 – Market value vs. Market price.
• 03:10 – Refresher on the terms.
• 05:00 – Market price is a factual number.
• 06:10 – Intrinsic value: what is the property worth to this specific buyer/seller.
• 06:35 – Balanced market the market value and market price are usually the same.
• 07:45 – Market price has increased higher than market value.
• 08:15 – Buyers are motivated.
• 09:15 – Why does this matter?
• 10:45 – Buyer’s motivation drives market price, but does the buyer’s motivation drive market value?
• 12:10 – Lender is concerned with market value.
• 13:00 – Market price can be supported with multiple offer information.

 

BETWEEN THE LINES LINKS

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