Ask Question
3 March, 04:12

John's home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000, which is the price other similar homes in the neighborhood are selling for and John accepts. What does the price of $365,000 represent?

+5
Answers (1)
  1. 3 March, 05:30
    0
    Market value

    Explanation:

    The market value of a product is the price at which a buyer is willing to purchase a good irrespective of prevalent price of a commodity. It is that amount a buyer and seller are willing to strike a deal for given normal market conditions.

    In this scenario John originally bought his five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000.

    Despite the house now being $350,000, $365,000 is the market price at which the buyer and seller are willing to settle.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “John's home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate agent ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers