OSPAR Consulting Ltd. ‐ Market Value in a "Bust&quo; Cycle

There is always a market for real estate. In difficult times, some people will say that there is no market, or that the prices purchasers will pay are unrealistically low. This is not true. Effecting a sale is ALWAYS a question of price.

Market Value always exists, and is represented by the range in value which reflects the overlap between the lowest price at which sellers will part with a property and the highest price at which buyers will acquire it. Refer to the charts below. The first represents a normal market and the second represents a market "crash" or "bust". "Market Value" exists in ALL markets.

Market Value exists even during the worst period of a real estate cycle when sellers and buyers are far apart in opinions of value. As demonstrated in the diagram below, Market Value is still represented by a range between the lowest price at which sellers will part with a property and the highest price at which buyers will acquire it, but for the owner who wishes to sell when this bust scenario is entrenched, the most probable Market Value will be below the range at which sellers would like to sell. For prospective purchasers, the most probable Market Value will be above the range at which buyers would like to buy.