“What’s That House Cost?” — Vol. #42
Want to buy 100 shares of Microsoft?
If the last trade was for $25.43, it’s a good bet that you’ll have to pay . . . .$25.43 (or maybe $25.42 or $25.44).
Want to buy a nicely updated, four Bedroom Colonial in East Edina?
That’ll be . . . . $950,000. Or maybe $875,000. Or perhaps a cool $1 million.
For the same house.
Defining “Market Value”
Why such a broad range?
Because there haven’t been that many recent deals to serve as benchmarks (called “Comp’s,” or Comparable Sold Properties,” as they’re known in the trade).
With fewer transactions to serve as precedents, Buyers and Sellers have more ground to bridge to reach what everyone agrees is “market value.”
