Does Capital Value really matter?

The capital value (CV) of a property is just one factor that buyers and sellers take into account when negotiating a sale.

Other factors that can influence the sale price of a property include its location, size, condition, age, and features. For example, a property in a desirable location or in good condition may command a higher sale price than a similar property in a less desirable location or in poor condition, even if their CVs are the same.

In some cases, a property may sell for a price above its CV, as buyers are willing to pay more for a property that they perceive to be more valuable. Conversely, a property may sell for a price below its CV if the market demand is low, or if the property has significant issues or limitations that lower its value.

I have two recently sold examples to demonstrate this point below.