Why can construction cost, sale price, and market value all be different?
Staff Q&A from the 63Hours team.
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Why can construction cost, sale price, and market value all be different?
Staff Q&A from the 63Hours team.
Cost is what was spent, price is what a particular buyer paid, and value is an opinion of worth under stated conditions. An expensive improvement does not force the market to repay its cost. The appraisal lessons separate these ideas so you do not assume a receipt or an asking price automatically establishes market value.
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Discussion prompt: Which figure is historical expenditure, and which is an opinion of worth?