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Written by: Mandisa Ndlovu
Market value and sale price are two terms that are frequently used when it comes to buying and selling property. Although they may appear to be synonymous, they have different meanings that can have a substantial impact on real estate transactions. The projected worth of a property based on several characteristics, such as size, location, and comparable sales in the current market, is referred to as the market value. Professional Valuers calculate the market value by valuing objective criteria to determine the property's worth. This provides an unbiased estimate of how much a property will sell for under regular market conditions.
In contrast, the sale price is the sum of money agreed upon between the buyer and seller in a real estate transaction. It is the purchase or sale price of the property. Negotiation skills, market conditions, buyer and seller motivations, and property-specific considerations can all impact the sale price. However, the sale price, unlike the market value, may not always reflect the genuine market value of the property.
Understanding the distinction enables buyers, sellers, and investors to make informed decisions while ensuring fair and transparent real estate transactions. Parties can confidently navigate the real estate market and accomplish their objectives by considering market value and sale price.