Fair market value is an important real estate metric for investors, buyers and sellers. It can help you determine the best possible asking price for a home sale or whether a home you want to buy is a good deal. However, unlike many other pieces of the real estate puzzle, fair market value can be complicated to find. Here are the basics of fair market value to help you get a better understanding of this important term.
The fair market value of any property equals the price that a buyer would pay in the current market climate. It’s an estimate based on multiple fluctuating factors. Rather than the intrinsic value of the property in any market, the fair market value can be affected by economic trends, such as supply and demand. Therefore, the fair market value of the same property might be different in two different places or at two different times.
You can find the fair market value of a property in several ways:
Great thanks for my earning the privilege to be named a Five Star Real Estate Agent by Boston Globe for eight consecutive years, 2015 through 2023! I am deeply grateful to my clients for taking their valuable time to recommend me and favorably evaluate my service. I love what I do, and it is so rewarding to know that I am making a positive impact on my client's life!