Anyone who has tried to buy or sell a home will be familiar with the concept of fair market value (FMV). It’s important to know the fair market value of any property, as it will help you determine if a sale price is reasonable.
The Price the Home Would Sell For Under Normal Circumstances
When selling a home, it’s important to be aware of the fair market value. This is the most probable price a house would sell for on the open market in normal conditions. The fair market value may differ from a home’s assessed or appraised value.
It’s important to work with a real estate agent and other professionals to get an accurate estimate of the fair market value of your home.
Fair Market Value is Different From the Assessed and Appraised Value
When buying and selling, you’ll hear many different terms regarding the value of a property, including appraised and assessed. Understand that these are all different. Fair market value refers to an estimation of how much a good or service would exchange hands for on an open market. In contrast, the assessed value is typically determined by a governmental agency such as a municipality to distribute taxes evenly.
Appraised values are also estimates but are usually conducted by a professional appraiser who employs specialized knowledge and tools when arriving at a final estimated amount. Fair market and appraised values are similar. However, fair market values are often favored since it is deemed more reliable when setting fair prices for buyers and sellers.
Buy and Sell With the Experts at Merchant of Homes
Have you outgrown your current home and are thinking of moving? Look no further than the experts at Merchant of Homes. We will help guide you through the process and answer any questions you have about the value of a property.
Whether you are looking to buy your very first home or prep a property for sale on the market, our team is the perfect resource!