Just had a client (selling) ask how relevant the price she paid when she purchased is to the current market value. Seems fitting time for a reminder for those interested. My answer: While we have indices that predict current price based on the last purchase, most buyers are focused on recent sold data and then with the current purchasing power of their money. That is, they think, “if I have $X, what can I buy?” So, they look backward a bit with sold comparables and then turn their attention to their present available options.
January 28, 2014
Purchase Price vs. Current Market Value
by Michael Doyle