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Understanding market value as a buyer

Here is a scenario let me know which buyer got the better deal.

Buyer A
List Price $175,000
Price paid $177,000

Buyer B

List Price $175,000
Price Paid $160,000

On the surface it looks like Buyer B got a fabulous deal right? Wrong the market value of home B was $155,000. While the market value for Buyer A’s home was $185,000. There is one fact missing here in this scenario that as a buyer you must know and that is what the market value of the home is.

So what is market value? Market value is the most likely price a home will sell in the open market. To determine market value real estate agents look at similar homes that have sold in the neighborhood. Every home listed on the market is determined by sellers at what price they feel it is worth. Some sellers get it right and price according to the market value. Other sellers over value their home and don’t list their home even close to the market price. So as a buyer it is important not to correlate a great deal by what the seller’s list price but what the market value of the home is.

So if you are are looking to buy a home in Tampa it is important to work with a buyer’s agent who knows the local market and can provide you with a homes true market value.

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