SumitIt is true that sometimes the market value of what you have is much more valuable than what you have because of its intrinsic value, but that isn’t always true. Let’s say that your house is a really nice house and it has a lot of intrinsic value. You would never trade it for a new house that is much less valuable.
A house has intrinsic value because it has a value to you. The house does not have intrinsic value because it is a house. But the market value of a house may be much higher than its intrinsic value.
In The Matrix, we often see that the intrinsic value of the house and the market value of the house are two different things. In the movie the market value of the house is higher than its intrinsic value because the people who own the house pay for it with their own money.
The intrinsic value of a house is not determined by the money that people pay for it. If you are getting a loan to buy a home, the bank does not know how much your house is worth. If you bought a house for $10,000 ten years ago, a loan of $20,000 will have no effect on the value of the house you own today. The intrinsic value of the house is determined by the amount of money that other people pay for it.
In some cases, the value of the house is higher than the intrinsic value of the house. For example, you might buy a house at the top of a mountain that is 5,000 feet above sea level, and then sell it for something like $250,000. If it sells for $250,000, then the house will be worth more than the intrinsic value of the house. That’s the intrinsic value of a house.
If you buy a house at the top of a mountain that is 5,000 feet above sea level, and then sell it for 250,000, the value of the house may not be the amount that other people will pay for it. The market value of the house is determined by the amount that other people will pay for it. The market value of a house is calculated by dividing the price that other people will pay for it by the intrinsic value of the house.
The intrinsic value of a house is what you paid for it. The market value of a house is the amount that other people will pay for it.
If you’re a buyer that wants to sell your home for more than what the market value is, you have to either do some due diligence into the value of the property or go through the hassle of selling it. If you don’t know the value of your house or you bought it for less than what it was worth, you may have a tough time selling it.
The truth is, the value of a home is probably more a reflection of your current situation than it is of the home itself. What is important is what it does for you, what it does for the people that live around it.
When you buy a house for less than the current market value, you are essentially saying that you have no interest in keeping it. The market value of a house is based on the local market (the average price of houses sold in a particular local area), what it is currently worth, and what it can do for you.
