4.6 • 682 Ratings
🗓️ 4 August 2025
⏱️ 9 minutes
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0:00.0 | Brought to you by the Every Dollar app. Start budgeting for free today. |
0:06.7 | Hey Dave, can I ask you a quick real estate question real quick? You can. |
0:10.2 | All right. So this might be bad math in my head. So let's say we're in Nashville, Tennessee, |
0:15.9 | where the real estate has gone way up in value over the last five, 10 years. Right. |
0:20.0 | Okay. |
0:20.3 | So let's say the house I bought back in 2020 is quote unquote worth double. |
0:25.6 | And I put on the market for double what I paid for it in 2020. And let's say because of the influx and inventory, I have to drop the price a bit. And somebody comes in and bids $10,000 left. |
0:38.4 | So it's just a little under double. |
0:40.6 | I feel like on social media and whatever, |
0:43.5 | the report is house prices are falling. |
0:47.0 | But the way I look at it is I'm still on house money |
0:51.0 | because it's worth almost double what I paid for it. |
0:55.1 | And just because I take, |
1:00.4 | is that, is that a bad way for me to look at the real estate investment? Okay. Do you get what I'm saying? No, it is house money, but it's, it's different than that. The reason social media |
1:04.7 | is wrong is for a different reason. Market value of a property, by definition, when I went to real estate when I got my four-year |
1:13.5 | degree in real estate I have a degree in real estate and finance if you go to appraisal |
1:17.7 | class and you go to take even take your real estate test they teach you this what a market |
1:22.6 | the definition of market value of a piece of real estate is what a willing buyer is able to give a willing |
1:29.8 | seller and willing when neither are under duress. |
1:37.7 | So in other words, if you're getting foreclosed on, that's not a valid say you can't use that sale when you're doing an appraisal. |
1:46.5 | Right. |
1:46.9 | Because it does not establish market value because one of the parties is under duress. |
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