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>> If you wouldn't sell your house for $1M, then it is worth $1M to you (Sorry, deleted that phrase after getting distracted while making my comment. In my mi

>> If you wouldn't sell your house for $1M, then it is worth $1M to you (Sorry, deleted that phrase after getting distracted while making my comment. In my mind the edit was instant!) > What a house is worth is what someone else will pay you for it. There is no intrinsic worth to it. > People find out it is true when they try to sell something. Of course there is intrinsic value. A buyer has to pay you what you want for your house. You are setting the market price. If someone wants it, thats what they will need to give you. We often use the word “worth” to mean “what would be the best offer I might get. But you won’t sell it if it is “worth” more than that to you. Which “worth” is usually obvious from context. Valuations happen on both sides of every trade, and most often both participants end up with surplus value. The seller getting more than their minimum price, the buyer paying less than their maximum price. Even market makers commonly post prices with surplus relative to their neutral trade valuation, and typically move their price if their are no takers. They want a trade at X, but will try for as much surplus as they can before settling for X if they have to.

WalterBright 3y ago
> A buyer has to pay you what you want for your house. You are setting the market price. A buyer offers what he wants to pay for it. You negotiate until reaching an agreement. That is the market price. I.e. The Law of Supply and Demand. If you think the seller sets the market price, try selling your car for $10 million.
- Tade0 3y ago
  Don't you think that your take is a little bit reductionist? There are plenty of things which are valuable or bring value, but are never sold or bought. Case in point: how much is the Sun worth according to you?
  - Nevermark 3y ago
    I don’t have any ability to make choices about it that depend on any conscious valuation. But do you doubt I value it because I am not buying or selling it? I suppose near infinite, in that I would certainly sacrifice everything I have to protect it - given it represents the survival of all of us - which for me at least would be the apex of value. It is worth noting that value can often be measured in currency, but not always. It is ultimately an ordering of everything, by kind and quantity. In the end, even money is just another “thing” which we value on a gradient and relative to context (what we need to survive, we value a lot. To live Without stress, a lot, but less. More than that, even less, even if we are ambitious.) Market value comes directly from each of our personal, “intrinsic” as another commenter called it, valuations. There is no market value where there are no personal valuations. But there can be personal valuations where there is no market. Each of us still prioritizes what we have against what we want, and the costs to us of that, even if we were hermits. Each of spends our time, the ultimate resource, based on our relative values of things. That is the source of all “value” or “worth”. Individual or (and before) collective.

WalterBright 3y ago

> A buyer has to pay you what you want for your house. You are setting the market price. A buyer offers what he wants to pay for it. You negotiate until reaching an agreement. That is the market price. I.e. The Law of Supply and Demand. If you think the seller sets the market price, try selling your car for $10 million.

Tade0 3y ago
Don't you think that your take is a little bit reductionist? There are plenty of things which are valuable or bring value, but are never sold or bought. Case in point: how much is the Sun worth according to you?
- Nevermark 3y ago
  I don’t have any ability to make choices about it that depend on any conscious valuation. But do you doubt I value it because I am not buying or selling it? I suppose near infinite, in that I would certainly sacrifice everything I have to protect it - given it represents the survival of all of us - which for me at least would be the apex of value. It is worth noting that value can often be measured in currency, but not always. It is ultimately an ordering of everything, by kind and quantity. In the end, even money is just another “thing” which we value on a gradient and relative to context (what we need to survive, we value a lot. To live Without stress, a lot, but less. More than that, even less, even if we are ambitious.) Market value comes directly from each of our personal, “intrinsic” as another commenter called it, valuations. There is no market value where there are no personal valuations. But there can be personal valuations where there is no market. Each of us still prioritizes what we have against what we want, and the costs to us of that, even if we were hermits. Each of spends our time, the ultimate resource, based on our relative values of things. That is the source of all “value” or “worth”. Individual or (and before) collective.