The Ole What-Somebody-Else-Paid Issue

For novice buyers, it’s always a fun┬átime for me to disabuse them of the notion that it doesn’t freaking matter, as it relates to the current value of the property, what the seller paid for the property whenever it was they bought the property.

The only piece of relevant info that can be gleaned from knowing what somebody paid for a place is guesswork as to whether they will accept an offer in the current market. For example, if someone bought at a higher point in the market, and they now owe more that it’s worth, that seller may be inclined to NOT accept a low offer.

If someone bought when the market was low, or they bought many, many years ago, when they go to sell, and that seller stands to gain a seemingly large amount of money, so what? Does that make them greedy? Does that question have any relevance? I would say, No.

Real estate, in general, appreciates in value, due to the economic force known as inflation. Real estate is not without risk, from a variety of factors. If someone makes a gain from a real estate investment, that gain is their business, and has no bearing on what a buyer should offer.


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