mattwnz:

Geektastic: Long long ago, in Galaxy far away, I worked as a valuer. The definition of open market value we were held to by the Royal Institution of Chartered Surveyors is (or was, it may have been tweaked since but this will be close)

'The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion. '

Interestingly and merely for information, when you borrow money to buy a house in the UK, the bank will send a valuer to inspect and value the property in person. This at least helps temper some of the mystery around prices I often note here in NZ but is mainly to provide comfort to the lender that the asset you’re offering as security is worth enough and is in reasonable condition etc.

 

They used to do that in NZ too. Not sure if they do that today? When my parents purchased a house in the mid 80's the bank manager had to come before they would approve the loan, and that was when interest was in the double digits.