There is no easy answer when it comes to valuing property. It depends on factors such as location, property type, and recent comparable sales. In general, agreed value is more often used for high-value properties, while market value is more commonly used for lower-priced homes.
The main difference between the two is that agreed value is a pre-determined amount that is set by the buyer and seller before the sale, while market value is the price that a property is currently worth on the open market.
There are pros and cons to using each method. With agreed value, the buyer and seller can be sure of the price before the sale, which can avoid problems later on. However, if the property market changes, the agreed value may not be the same as the current market value, meaning that the buyer could end up paying more or less than the property is actually worth.
With market value, the buyer knows that they are paying the current market price for the property. However, this method can be more open to negotiation, as the buyer and seller may not be able to agree on a final price. Additionally, the market value of a property can fluctuate, so the buyer may end up paying more or less than the property is actually worth at the time of the sale.
Ultimately, it is up to the buyer and seller to decide which method is best for them. They should consider factors such as the current market conditions, the price of the property, and their own negotiating skills before making a decision.