According to the National Auctioneers Association’s official definition,
market value is the highest price a property will bring in a
competitive and open market under all conditions requisite to a fair
sale, with the buyer and seller each acting prudently, knowledgeably and
assuming the price is not affected by undue stimulus.
The commonality in both of these definitions is that market value can’t
always be accurately predicted. While many appraisers do an excellent
job of valuing properties or assets based on local market situations, it
does not guarantee an item will be sold for its quoted value, said
Jason Winter, CAI, AARE, CES, an Auctioneer based in Harrisonville,
“Consumers are going to purchase the property at the fairest price,”
Winter said. “An appraisal is just an opinion. But, at an auction you
have multiple potential buyers telling you what a property is really
Using an NAA auction professional increases the chances an item fetches a
quoted value. NAA professionals are well versed on the best practices
of marketing and advertising properties and assets, which frequently
results in increased attendees at an event (including people logged on
for an online auction).
Regardless, some sellers often believe the true market value of an asset
is higher than the actual market is willing to pay. Winters said he has
seen many examples of people trying to sell real estate at an auction
who were not going to let the property go unless a minimum threshold was
reached. After the auction ended unsuccessfully, the seller unloads the
property months later at an even lower price than what it would have
fetched at the original auction.
“A seller wanted $150,000 for his house, but at the auction, it only got
to $140,000. He employed a real estate agent and finally sold it six
months later, to someone who was at the original auction, for $135,000,”
Regardless, it is important for potential sellers to be cognizant of
market trends and be realistic about their expectations for the price at
which an item can be sold, Mears said.
“Are you dealing with your ‘head’ price or ‘heart’ price?” Meares asked.
“If you have a nostalgic connection to something, then keep it. Money
will never make up for lost memories.”