What is a Market Value Index?
This entry was posted on 02/21/2006 01:37 PM and is filed under Pricing Properties for purchase and resale. Market-value weighted index Definition A stock index in which each stock affects the index in proportion to its market value. Examples include Nasdaq Composite Index, S&P 500, Wilshire 5000 Equity Index, Hang Seng Index, and EAFE Index. also called capitalization weighted index. We use the term to find out the value of the property we intend to purchase and resell. It is our formula for purchasing and reselling property. Unlike most of you we do not use the real estate brokers to price out our purchases and do not always rely upon the comparable sales method used by brokers. In fact we see a conflict (tension) between the real estate broker and us as investors that can not be resolved. The broker wants a listing and will try to get you the highest and best price for the property. This may take months to do and may wreak havoc on your cash flow waiting to make a few thousand dolla
