14332Re:Total land rent?
- Nov 14, 2012--- In LandCafe@yahoogroups.com, "k_r_johansen" <kjetil.r.johansen@...> wrote:
>JDK: My point was more esoteric. Market value is what a reasonable and willing buyer and a reasonable and willing seller would agree to. It is a kind of myth which we use because there is no actual true value. So we all have to understand that there is a process of estimation going on.
> --- In LandCafe@yahoogroups.com, JDKromkowski <jdkromkowski@> wrote:
> > Both Roy and Krj couched the market value as what someone was willing to pay. But that is not right there also must be a willing seller. A with a home sometimes you just don't want to sell because you like your neighbors or the kid(s) are still in school.<
> Rental value is always whatever someone is willing to pay (in rent). There are smarter people than me that have explained why rental values are more of a sure thing in assessment, especially in the "ability to pay" department.
What is the true value for an Apple stock share? Who knows? We can tell the last close. We can tell last sale (actual willing buyer and willing seller) at some particular second or microsecond in time. But neither are guarantees of the value will be 2 secs later or 2 days later. But we cannot know the true market value.
If there are no sales in a neighborhood, but there is one and only one guy putting in a $1 bids on the houses in the neighbor. The homes are not just worth $1. And by the same token if this same $1 nut, tomorrow puts a $1M bid on a random home, but the owner say that guy is just a nut I'm not selling to him for the sake of my neighbors who I like, that does not mean that that house is worth $1M or more than $1M. (Even though maybe he should sell if he were a robot.)
The point is that the home market is not as rational as the business market. There is no price finding mechanism, like there is for stocks. We can make some reasonable estimations but I don't want us to think that this is really some true "market thing" like has development for agricultural products or other commodities or equities.
But back to the true question:
What is an estimate of the total land rent (or land value) for the US and by what method and with what data?
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