Hot Rods Deuce guys are in trouble

Before a bank issues a property loan, they have to do their own appraisal based on comps, regional housing market etc. to gauge their risk at lending X-amount of dollars for a property they may have to foreclose on and resell to recoup their $. If they think they could only sell a house for $350k, they will not lend $465.

In my opinion, at that moment my house was worth $350k, because that's all that I could have sold it for, there were no comps selling for more.

In order to secure a loan on a house appraised at less than sale price, the buyer must kick in 100% of the difference in cash at the time of the sale. My neighbors just did this, they offered 30k over asking price, but had to give the 30k to the seller in cash because the bank would only cover appraisal value. In this case the thing could be said to be actually worth what someone was willing to pay.

Clem suggests the opposite.

Clem suggested that if he owns a '32 Ford, "feels" it's worth 90k, and that the true value of said car is exactly 90k, even if the "market value" and highest bid at that time is 80k.

I was just comparing a house with a car, to take the "Deuce" emotion out of it.

If I spent $40,000 completely restoring a clapped out Chevy Chevette to showroom condition, (if I hired Highlander it could! Worth every penny because it could take that much of his time ) and I feel strongly that it's worth $40,000, does it make that car worth $40,000 ? Even if the market value and auction results suggests that it could only bring $10,000, in any condition?

If indeed we see a trend away from '32 Fords (ever), do peoples' emotions over ride economics?

 

Nope, the single most important factor in Market value is what someone wants to pay (even better if Two guys want to pay it), and many times that has NOTHING to do with quality, provenance, or anything else. We have all seen instances of crappy cars selling for way more than they should have been worth if you base them on quality, but it is irrelevant if someone wants it anyway - as they say the heart (or ego) wants what the heart wants.
And I've seen the opposite happen as well. Earlier this year I bought a very well known 55 Chevy for peanuts. Why? Because not enough folks knew this car was for sale at the time and I got it for a ridiculously low price. A good freind really wanted it, so I gave it to him for the same amount, and he couldn't be happier.
Market value has as much to do with luck and timing as anything else.

 

The car may have more value to you than $80,000 but it is not worth ( in a monetary sense) more. Something cannot be worth more than you can sell it for. A monetary value randomly assigned to something is meaningless unless you are able to get that money out of it.

 

perceived value/ true value is a strange thing: raining, cold and dark, you go out to your car and it starts and get's you home. the parts in that engine valuable. next morning you drive to a repair garage for some maintenance. oils, plugs, wires etc changed. what are the old parts worth?............at that time nothing.
cold wet night, need to get medicine for the kid, two cars in the garage, a 32 highboy roadster and a chevette..............

 

Snowing like crazy right this minute in eastern Ct...I was going to drive my 32 today.. but I do have windows, heater,defroster, and wipers.. lol
I was going to take pics for the "fall colors" thread.. Does WHITE count?

.

 

The "hoarder" comment was humorous Danny. I live in a house with a lot of windows!

 

Holy CRAP! I gotta call my bank and explain this to them! My house just went up 100K!!!

I worked in the financial industry for 25 years, dude you need to put down the pipe....

 

I bought the 3 window in my avatar for $4000. about ten years ago.
Then paid two and a half times that much for a nice genie chassis.
Another 5 or so various parts over the time I have had it.
I figure I have parts from about ten different 32s all total.
Oh well, guess I am stuck for a loss with these declining
values! Damn.