When you think of the value of an item or property what comes to mind?
Do you think about retail value, wholesale value or replacement value? Do you think about the availability or demand for the item or property? Do you think about condition, scarcity and other factors that play a role when determining value?
In reality there are many factors that influence value, and at the end of the day there are many formulas for determining value.
For instance; if you are determining the value of a specific piece of real estate, your opinion of value will be influenced by what your use for the property will be.
Will you be living in the home, or is it a cash flow investment?
If you are living in the home you might want to remodel the kitchen and repair the wood floors. If you are an investor and plan on cash flowing the property you might do minor repairs to the kitchen and cover the floors with carpet. The answers to these questions and many more will determine your total investment and ultimately what the property is worth to you as a buyer.
So what is it worth? It’s worth what you as a buyer are willing to pay for it. This is the ultimate definition of market value.
This is why the auction method of marketing is the most efficient process for determining market value.
As a buyer you have the opportunity to place a bid based on what the property is worth to you regardless of what formula you use.
As a seller you have the opportunity to eliminate the negotiation process and be ensured that ready willing and able buyers will be competing for your property based on what it is worth to them.
If you are a seller and would like to learn more about the auction method of marketing, please feel free to call our office for more info.
If you are a buyer, please take a look at our auction calendar and see if there is something there for you.