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Market pricing

I think I understand that Market Price is an estimate of sale price between willing seller and buyer; but how does the Realtor commission factor into the total?  Can there be an "intrinsic value" of a home, or is the sales transaction process the driver of Market price?
  • March 24 2013 - Asheville
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Answers (2)

Hello, the market price is just that, what a ready willing and able buyer will pay based on similar sales from a seller NOT in distress.
When pricing a property, we price it based on the best data we have and help the seller understand the value in pricing correctly. The commission/brokerage fee is a cost of doing business and should not be (IMHO) factored into the price. Need more info, just call. Jason
  • March 26 2013
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.. but how does the Realtor commission factor into the total? 

Since sales commissions are assumed with every transaction, it isn't considered a factor in value. 

Can there be an "intrinsic value" of a home, or is the sales transaction process the driver of Market price?

Sales prices create value and the market price, just like with other products that may have underlying costs.

If you want to value a home, look at what others have sold for, then make adjustments based on time and/or differences, and ignore any commissions.
  • March 24 2013
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