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Steel Valley Football
Posts: 4,548
Aug 9, 2010 4:53pm
That's fine...you still have some knowledge.
Con Alma says that a property's market value is whatever a prospective buyer is willing to pay for a property. Agree or disagree?
Con Alma says that a property's market value is whatever a prospective buyer is willing to pay for a property. Agree or disagree?
thedynasty1998
Posts: 6,844
Aug 9, 2010 5:01pm
Steel Valley Football;446575 wrote:That's fine...you still have some knowledge.
Con Alma says that a property's market value is whatever a prospective buyer is willing to pay for a property. Agree or disagree?
100% agree. That's why I find appraisals funny at times, and I understand the logic behind appraisals. But for instance I have a friend who agreed to sell his house for $187,000. He had a willing and able buyer but the bank came back and said it was only worth $183,000. Personally, I would have fought it, but who can argue with the bank giving you the money?
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Steel Valley Football
Posts: 4,548
Aug 9, 2010 5:06pm
thedynasty1998;446583 wrote:100% agree. That's why I find appraisals funny at times, and I understand the logic behind appraisals. But for instance I have a friend who agreed to sell his house for $187,000. He had a willing and able buyer but the bank came back and said it was only worth $183,000. Personally, I would have fought it, but who can argue with the bank giving you the money?
And you passed the test???
Think about it some more - what if you have an uninformed buyer coming in and paying way higher than the neighborhood can support? Just because someone pays X amount does not make that the market value. That amount is defined as the sale price, not the market value.
thedynasty1998
Posts: 6,844
Aug 9, 2010 5:14pm
Steel Valley Football;446588 wrote:And you passed the test???
Think about it some more - what if you have an uninformed buyer coming in and paying way higher than the neighborhood can support? Just because someone pays X amount does not make that the market value. That amount is defined as the sale price, not the market value.
In our classes for the prelicensing, every instructor taught, a market value is what a willing and able buyer is willing to pay. Now there are things that can alter that like divorce, for example, but all things being equal, it's what is taught.
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Steel Valley Football
Posts: 4,548
Aug 9, 2010 5:16pm
thedynasty1998;446597 wrote:In our classes for the prelicensing, every instructor taught, a market value is what a willing and able buyer is willing to pay. Now there are things that can alter that like divorce, for example, but all things being equal, it's what is taught.
No - willing, able, and INFORMED. Look it up.
thedynasty1998
Posts: 6,844
Aug 9, 2010 5:27pm
Steel Valley Football;446601 wrote:No - willing, able, and INFORMED. Look it up.
You are correct. Not sure what your debate is, but I think both would be right. It's just a battle of words. One can say the buyer sets the market value, but it is really the banks unless you are making a cash offer.
Another example, I bought a house in April and what we paid for it was 4% less than what the bank appraised it for. So did I buy it for less than market value, or did I set market value?
Our neighborhood only has like 10 different models, so everyone that has our model now looks at our sale price to determine market value, but they are unaware of what it appraised for.
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Steel Valley Football
Posts: 4,548
Aug 9, 2010 6:08pm
Your market value is the most probable price your house would sell for on the open market. As odd as this may sound coming from an appraiser, the appraised bank value could be irrelevant.
I'm going to start a new thread for this as not to hijack this one any further.
I'm going to start a new thread for this as not to hijack this one any further.
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Con_Alma
Posts: 12,198
Aug 9, 2010 9:17pm
Steel Valley Football;446575 wrote:That's fine...you still have some knowledge.
Con Alma says that a property's market value is whatever a prospective buyer is willing to pay for a property. Agree or disagree?
I have never said such a thing.
The market value is the price point when the price a buyer is willing to purchase at meets the price that a seller is willing to sell at.
It's not the most recent, comparable selling price. it's not what the sell thinks it's worth. It's not what the buyer is willing to pay.
It's the price point that both are willing to transact act.
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Steel Valley Football
Posts: 4,548
Aug 9, 2010 10:25pm
Con_Alma;446899 wrote:I have never said such a thing.
The market value is the price point when the price a buyer is willing to purchase at meets the price that a seller is willing to sell at.
It's not the most recent, comparable selling price. it's not what the sell thinks it's worth. It's not what the buyer is willing to pay.
It's the price point that both are willing to transact act.
My response is in the new thread as to leave this one just about land contracts.
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Con_Alma
Posts: 12,198
Aug 10, 2010 5:20am
Yes it's a selling point and no I don't believe the selling point has to be tested to become the market price anymore than past transaction prices would no longer be the market price because of the new transaction price.
I don't think it takes two or more to establish a market price. I also don't think a single buyer establishes the market price. A buyer and seller are the market....until the next transaction that is.
Present value to the the buyer and seller in a transaction, if I am one of the participants, is the only part of the market that's relevant in a transaction.....unless you are a bank who is letting someone use your money then you gotta predict the future I guess.
I don't think it takes two or more to establish a market price. I also don't think a single buyer establishes the market price. A buyer and seller are the market....until the next transaction that is.
Present value to the the buyer and seller in a transaction, if I am one of the participants, is the only part of the market that's relevant in a transaction.....unless you are a bank who is letting someone use your money then you gotta predict the future I guess.
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Sonofanump
Aug 10, 2010 7:15am
ernest_t_bass
Posts: 24,984
Aug 10, 2010 7:27am
Thanks for the hijack, fellas.
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Steel Valley Football
Posts: 4,548
Aug 10, 2010 7:44am
Con_Alma;447086 wrote:Yes it's a selling point and no I don't believe the selling point has to be tested to become the market price anymore than past transaction prices would no longer be the market price because of the new transaction price.
I don't think it takes two or more to establish a market price. I also don't think a single buyer establishes the market price. A buyer and seller are the market....until the next transaction that is.
Present value to the the buyer and seller in a transaction, if I am one of the participants, is the only part of the market that's relevant in a transaction.....unless you are a bank who is letting someone use your money then you gotta predict the future I guess.
Why would you not put this in the other thread?
Edit: Con Alma, I just realized that you are here answering my response from the other thread after I asked you to post over there....like you did it on purpose. Unbelievable. It's no wonder you and I didn't see eye to eye before.
I'll tell you why you are wrong on the other thread, unless you are too stubborn to post there. Sorry for all this, ET Bass.
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Hammerin'Hank
Posts: 151
Aug 10, 2010 7:56am
A land contract is a great way to leave the bank out. The more times you can do that, the better.
As the seller, you have the peace of mind that if the buyer can't continue to pay, you get to keep the money they have already paid and, you get the property back.
As the buyer, you should be getting a reduced interest rate and the peace of mind knowing you are getting property that the owner is usually still available and nearby, in case you have questions about the property.
As the seller, you have the peace of mind that if the buyer can't continue to pay, you get to keep the money they have already paid and, you get the property back.
As the buyer, you should be getting a reduced interest rate and the peace of mind knowing you are getting property that the owner is usually still available and nearby, in case you have questions about the property.
Commander of Awesome
Posts: 23,151
Aug 10, 2010 8:27am
Since when can you hijack a dead thread? Your thread was over by the 3rd post.ernest_t_bass;447097 wrote:Thanks for the hijack, fellas.
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Con_Alma
Posts: 12,198
Aug 10, 2010 9:28am
My apologies for contributing to a different direction ernest.
Heretic
Posts: 18,820
Aug 10, 2010 9:40am
ernest_t_bass;447097 wrote:Thanks for the hijack, fellas.
I know, right? Next thing you know, the infidels will be resurrecting threads that have been dead for over a month! The bastards!
ernest_t_bass
Posts: 24,984
Aug 10, 2010 9:45am
Commander of Awesome;447120 wrote:Since when can you hijack a dead thread? Your thread was over by the 3rd post.
Thanks SQ.
ernest_t_bass
Posts: 24,984
Aug 10, 2010 9:46am
Heretic;447185 wrote:I know, right? Next thing you know, the infidels will be resurrecting threads that have been dead for over a month! The bastards!
LOL. I see what you did there.
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Con_Alma
Posts: 12,198
Aug 10, 2010 9:48am
Isn't identifying someone as hijacking a thread topic by posting on said thread in and of itself and act of hijacking??
ernest_t_bass
Posts: 24,984
Aug 10, 2010 9:54am
Con_Alma;447192 wrote:Isn't identifying someone as hijacking a thread topic by posting on said thread in and of itself and act of hijacking??
Umm... Ya got any gum?
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Con_Alma
Posts: 12,198
Aug 10, 2010 9:59am
...just a Tic Tac. Sorry.
thedynasty1998
Posts: 6,844
Aug 10, 2010 10:02am
ernest_t_bass;447188 wrote:Thanks SQ.
I see what you did there.
There was a thread discussing how he is SQ that he was heavily involved in, but once the SQ references came up, he disappeared. Kind of ironic, don't ya think?!
BRF
Posts: 8,748
Aug 10, 2010 11:38am
Don't ever say "Hi" to a guy named Jack on an airplane.
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Sonofanump
Aug 10, 2010 11:50am
Heretic;447185 wrote:I know, right? Next thing you know, the infidels will be resurrecting threads that have been dead for over a month! The bastards!
http://www.ohiochatter.com/threads/5566-Things-Heretic-Finds-Enraging!/page3