— George Bernard Shaw
A quote I really like and to which I often refer comes to mind as I contemplate a valuation conversation with a real estate expert at banking management levels. For me, when I review my own properties, I often cannot see what the value should be. It is hard for me to separate my desires, wants, and needs from true value.
The market does not recognize my needs specifically, and based on the underlying principle of substitution, that market (i.e. buyer) can chose another alternative versus my property. As humans, we value what we have already acquired, for whatever the myriad of reasons may be. They are often non-pecuniary, having nothing to do with the market value. Residential, particularly, is a bit tougher than commercial, since it often has more emotional investment.
The question is, will I be able to adequately communicate the market data to provide enough information to help the seller make what I perceive as a good decision. Ultimately, it is their decision.
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