Market Value – A Primer for Today’s Home Buyer

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Real Estate Agent with Realty One Group - www.FindCARealEstate.com BRE# 01708749

Market Prices - Real EstateIn the current seller’s market that exists in most areas of the country, I can assure you that most buyers will be paying “market value” for a home.  Let’s have a closer look at the definition of “market value” (source BusinessDictionary.com): “The highest estimated price that a buyer would pay and a seller would accept for an item in an open and competitive market.” With buyer demand far exceeding supply, it is basic economics that a home will most often sell for its market value.

As I write this post, I am grappling with how to best deal with another agent and their buyer who would like to debate what a particular home is worth based on what my seller paid for it last year and specifically what improvements have been made. The fact that my seller purchased the home as a short sale last year and probably got a very good deal has nothing to do with what the home is worth today. Simply put, it is worth what the market will bear. Sellers are being rewarded with higher prices as the market rises, just as sellers were hurt by price declines over the past several years. Yes “appraised values” don’t always jive with “market values” but with multiple offers the norm in many areas, chances are a seller will get their market price.

If you are a buyer and the right home presents itself I would encourage you to work with your agent to determine if the home is fairly priced in the current market and proceed with your offer. Those that would rather debate what they could have bought last year will get quickly left behind. Real Estate is in fact a competitive market and market based prices will generally prevail – make your best offer today!

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David Grbich | Broker - REALTOR® | 949-500-0484

DRE #01708749

 

 Please visit my website www.FindCARealEstate.com to Search Orange County Homes for Sale

 

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San Juan Capistrano Real Estate | San Juan Capistrano Homes

David Grbich is the Broker Owner of Ventana Coastal Properties, a leading real estate brokerage serving the needs of Orange County buyers and sellers. Orange County real estate experts serving Aliso Viejo, Costa Mesa, Coto De Caza, Dana Point, Huntington Beach, Irvine, Ladera Ranch, Laguna Beach, Laguna Hills, Laguna Niguel, Lake Forest, Mission Viejo, Newport Beach, Newport Coast, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Talega, Tustin and surrounding areas.

 

 CDPE - Orange County Short Sale Agent

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Rainmaker
3,826,819
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Dave - what the seller paid for the home a year ago(or 30 years ago) has no bearing on current market value --- buyers and their agents need to be aware of the current market -- unfortunately(for buyers) it is quite competitive in many areas and multiple offers, homes selling in excess of list price and contingencies are being removed or shortened --- it's not the most fun for buyers today unless and until they WIN.

May 28, 2013 11:21 AM #1
Rainer
234,847
David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

Hi Michael - well said - it is very competitive and buyers really need to be ready to buy - strong offers with strong terms and a great deal of persistence. Regards Dave

May 28, 2013 11:46 AM #2
Rainmaker
1,185,295
Adrian Willanger
206 909-7536 AdrianWillanger-broker.com - Seattle, WA
Profit from my two decades of experience

David-I had a seller this weekend show me a appraisal he had on his home in 2009 that was way higher than what it is home is worth today. Even with the market heating up it was still out of line. David you offer some great information on how to deal with rising home values and a bidding in a competitive market place. 

May 29, 2013 01:31 AM #3
Rainmaker
3,495,134
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Recently Dave we had a buyer that was only interested in what the seller paid for the house 20 years ago and didn't care about the renovations and market value of today!

May 29, 2013 10:23 PM #4
Rainer
234,847
David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

Hi Adrian, that is just wishful thinking but as prices continue to increase they just may get there. Regards Dave

 

Hi Sheila/Larry - now that is really reaching - it's all about market value in this market now 20 years ago!! Regards Dave

May 30, 2013 12:34 AM #5
Rainmaker
4,554,099
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

David, hope you are able to smooth out the details for this agent.    It is truly all about what the CURRENT market is doing, and some buyers (and agents) get caught up in what the seller paid for the home.  

May 31, 2013 11:12 AM #6
Rainer
234,847
David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

Hi Joan - this particular agent showed the home multiple times and came back to us (via email) multiple times working the same angle. Missed opportunity! Regards Dave

Jun 01, 2013 01:30 AM #7
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Rainer
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David Grbich

Orange County Real Estate - 949-500-0484
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