Updated: Sep 5
We've been helping property buyers buy properties in Melbourne since 2018. One of the most confused concept is the Price vs Value. Many buyers have unfortunately mixed these 2, and this results in them not understanding what the differences are
In this blog, we will attempt to explain this concept.
What is price? What is value?
Price is what the vendor is asking for.
Value is subjective. It is how much a buyer would pay for it. What one buyer chose to offer for a property can be very different from the other buyer.
A sale is only made when the price meets the value.
In real estate, it is common to see a vendor overpricing their property. Everyone believes what they have is worth more and hope to get the best money from it.