Market Value

Market value is commonly misunderstood. In real estate market value is the price that a willing seller is prepared to sell at and a willing buyer is prepared to purchase at.

It is commonly said that “a house is worth what someone is prepared to pay”. This is not true. Let me explain... If a vendor choices to put their house on the market, they are really saying I will exchange my house for an amount of money (excluding trades).

If they do not receive a satisfactory offer they simply choose to hold on to their property rather than exchange it for an “insufficient” amount of money. What the vendor is really saying is that their house is worth more to them than any other buyers offer of money. This is their right.
Obviously it is just as incorrect to argue that a house is worth what a vendor will sell at, even if it is more than anyone is willing to pay. Hence both seller and buyer must agree for the house to be of “Market value”.

By definition all sales of property are at market value and hence offer the best indication of market value for comparable properties.

A good real estate agent will help both parties in the purchasing process by identifying for both what a reasonable price to sell and buy would be.
For the vendor who sees their property through rose-tinted glasses the agent must offer honest buyer feedback whilst still representing the property in the most valuable light.

As I always say...
Buying and selling property effectively is difficult, use an expert you trust.