Does Paying Above Asking Price Establish Higher Value?

Tom from the UK asked us this on the live show via YouTube:

Since people are paying above asking, does that then become the new “value” for that property?

This short clip came from our Aloha Friday Hawaii Real Estate Show which goes live every other Friday on our Hawaii Real Estate YouTube channel or our Living in Hawaii Facebook page

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Show Transcript:

et’s see a quick question since people
are paying above asking does that then
become the new value for that property
yeah uh scott scott scott’s nodding that
is the val that becomes the value that’s
what the appraiser you know that values
start going up uh is that correct scott
yeah the you know the simple the simple
definition of market value is what a
buyer is willing to buy it for and a
sellers wouldn’t sell it for so that’s
it that’s it yeah yeah that is it it’s
just more justifiable at that point once
you see another one that just sold oh
that one sold at that price well that
one that means this one it’s got to be
worth it it’s easier to justify in your
mind yep yeah exactly exactly