Quote:
Originally Posted by Bonanza
Sorry, but you are wrong on all counts.
Looking at the price of listed properties tells you nothing.
You have no way of knowing if each individual house is priced right
or if it is overpriced.
Most people cannot tell anything by guessing at what the type of home is,
unless you've been in the house and know the details.
The market does not depend upon what a buyer can afford.
The market is determined by properties that have sold and closed.
It is closed sales and only closed sales that determine what the market is. |
With all due respect, I beg to differ with you. The "market value" of a property is determined by many factors, only one of those factors is closed sales. Another factor is what a capable and willing buyer is willing to pay for said property.
In a rapidly increasing market, the price of prior sales is not a true indication of a properties values, and in a rapidly declining market the same applies. Appraisers have a difficult time justifying the value of a particular property in either of these conditions.
You are right when you say that the market does not depend upon what a buyer can afford, of course... however I suspect that the poster who mentiond that really meant "what a capable and willing buyer is willing to pay"