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What is Market Value?

There's a myth about making an offer on a home that all sellers will come down in price by x per cent. In fact, many buyers are under the assumption that sellers over price their homes in order to leave room for negotiation.

Let's be clear! The price that a home sells for is determined by the market. Perhaps some home sellers do come down in price, but that is likely because their home was priced above market value and they accepted a price at market value. Conversely, many homes do sell at or near their asking price. Why? It's because they are priced at market value! Homes that are priced at market value generally do not come down to a price below market value.

What determines market value? It is determined by buyers in the market. If a home is for sale and it is viewed to have value at the current asking price and it is purchased for that price, then that is market value! Low ball offers may shut the door on negotiations, and then what will you do with the money you saved? Remember, if you see value in a home at the current price, then it is likely the right price!

Thanks for reading!

By Patrick Murray