What are things worth?

This anecdote from House Price Crash:

At court today waiting outside patiently for a hearing to begin. Heard a wide boy type bleating about his property to his brief. Apparently it has been valued at £240k, been on the market for 2 years and only had one offer at £178k.

So, presumably two or more years ago someone with no intention of buying said house told him that it was “worth” £240k. More recently, someone who actually did want to buy the house concluded that they would be willing to pay £178k.

Things don’t have an inherent value, they are “worth” precisely what someone is willing to pay for them. If you want to sell something, what you paid to buy it or make it is irrelevant – you will only sell it for what a buyer is willing to pay for it.

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