Here are steps you can take to establish your independence after financial abuse and help ensure long-term financial health.
What is comparable value?
Comparable value is the dollar amount that the seller or retailer considers property or merchandise to be worth. This is a highly subjective amount and doesn’t mean that the item has or ever will sell at that price. All in all, this is a comparatively unscientific process and shouldn’t worry anyone who is a buyer or shopper.
A retailer is planning an advertisement and assigns an item as having a comparable value, or retail value, of a specific dollar amount. This is usually factored in two ways:
- One method is to assign value based on its relation to other items being sold in the area that are similar.
- Another method is to take an average from all similar items being sold in the area.
For example, if the Smiths are selling a two-bedroom, one-bath home on two acres, they should determine the value of other residences in their neighborhood with two bedrooms and one bathroom on two acres to figure the comparable value of the property. This helps to set the asking price and to ensure that it’s realistic for the area.
Making a large purchase soon? Shop today for a savings account to save for a big-ticket item? Check out the rates being offered at Bankrate.com.