Intrinsic value vs. Market Value. What's the difference. BY MARY THOMPSONReal Estate Appraiser with Lanier Appraisal Service CR004373EMAIL SHORT URL Share:June 06, 2018 11:14 AM REPORT As a Buyer's Realtor you want to make sure your client is not overpaying for one of the largest investments of their life...Their Home! As an Appraiser, I do not like to see a large gap betweenintrinsic value and market value. What is the difference and why does it matter? Intrinsic value: What does that home really offer to the buyer, without outside influences taking hold. Things like square footage, location, lot, quality, condition, style, appeal, etc. Market value on the other hand is what a willing seller and willing buyer (both acting with reasonable knowledge of the market and under no undue distress) agree to on a sales price. Technically, Appraisers are reporting market value for a property. However if that sales price is LESS about the property and more about outside influences, that can lead to market corrections later on where the buyer will LOSE! Right now I am seeing a larger gap than is preferable in some markets.So what are the top influences which make a buyer want to pay more than intrinsic value?1. Low Supply2. Low Interest Rates3. Low Unemployment Rates4. Employers giving workers better raises5. More Job Opportunities in the area If buyers are willing to pay MORE than the home is actually worth intrinsically, this defines a new market value for the area which is based upon what I like to call avery shaky foundation. So, my appeal to all Realtors and Buyers out there.....focus more on intrinsic value rather than market value (actual sales prices). If they are close to each other, you can feel safe with the investment. If however, they are far apart, buyer beware as your investment may not be as solid as you might think! Thanks for reading! About Us Lanier Appraisal Service5747 GARDEN WALKFlowery Branch, Georgia 30542770-967-0753 Visit Our Website
Intrinsic value vs. Market Value. What's the difference. BY MARY THOMPSONReal Estate Appraiser with Lanier Appraisal Service CR004373EMAIL SHORT URL Share:June 06, 2018 11:14 AM REPORT As a Buyer's Realtor you want to make sure your client is not overpaying for one of the largest investments of their life...Their Home! As an Appraiser, I do not like to see a large gap betweenintrinsic value and market value. What is the difference and why does it matter? Intrinsic value: What does that home really offer to the buyer, without outside influences taking hold. Things like square footage, location, lot, quality, condition, style, appeal, etc. Market value on the other hand is what a willing seller and willing buyer (both acting with reasonable knowledge of the market and under no undue distress) agree to on a sales price. Technically, Appraisers are reporting market value for a property. However if that sales price is LESS about the property and more about outside influences, that can lead to market corrections later on where the buyer will LOSE! Right now I am seeing a larger gap than is preferable in some markets.So what are the top influences which make a buyer want to pay more than intrinsic value?1. Low Supply2. Low Interest Rates3. Low Unemployment Rates4. Employers giving workers better raises5. More Job Opportunities in the area If buyers are willing to pay MORE than the home is actually worth intrinsically, this defines a new market value for the area which is based upon what I like to call avery shaky foundation. So, my appeal to all Realtors and Buyers out there.....focus more on intrinsic value rather than market value (actual sales prices). If they are close to each other, you can feel safe with the investment. If however, they are far apart, buyer beware as your investment may not be as solid as you might think! Thanks for reading! About Us Lanier Appraisal Service5747 GARDEN WALKFlowery Branch, Georgia 30542770-967-0753 Visit Our Website
Lanier Appraisal Service voted Best Appraiser in Hall County, GA BY MARY THOMPSONReal Estate Appraiser with Lanier Appraisal Service CR004373EMAIL SHORT URL Share:February 05, 2018 12:27 PM REPORTThanks to the people of Hall County, GA who voted Lanier Appraisal Servicethe BEST Real Estate Apprasier in Hall County, GA. We are humbled and we thank you. Thank you to THE GAINESVILLE TIMES for putting on a great party for all the winners in their respective business categories! 2018 is looking up!!!
Lanier Appraisal Service voted Best Appraiser in Hall County, GA BY MARY THOMPSONReal Estate Appraiser with Lanier Appraisal Service CR004373EMAIL SHORT URL Share:February 05, 2018 12:27 PM REPORTThanks to the people of Hall County, GA who voted Lanier Appraisal Servicethe BEST Real Estate Apprasier in Hall County, GA. We are humbled and we thank you. Thank you to THE GAINESVILLE TIMES for putting on a great party for all the winners in their respective business categories! 2018 is looking up!!!