Fair Market Value. What is it and how do you determine the bottom line?

Reblogger Martha Brown
Real Estate Agent with Long & Foster Real Estate, Inc., Annapolis MD 21403

Fair market value has the same meaning no matter where you live in this great country of ours. It is the price that a buyer is willing to pay an a seller is willing to accept without duress. Richard explains it beautifully here. 

Original content by Richard Weisser

Fair Market Value. What is it and how do you determine the bottom line?“Fair Market Value” has a simple definition. It is the price that a buyer is willing to pay and a seller is willing to accept without duress.

“Appraised Value,” “Loan value,” “Tax Value,” and especially “Internet Value” have nothing to do with fair market value, other than the effect that they might have on what a buyer is willing to pay.

Keeping in mind that the fact what the buyer is willing to pay is only one half of the fair market value, the other being what the seller is willing to accept, one must not be oblivious to the fact that there may be other ready, willing, and able buyers for the property,

When a seller calls for “highest and best” in a multiple offer situation, you are likely to uncover the true fair market value of the property.

The same applies to a property that languishes on the market for a long period of time that only garners a single low offer. If there is NO market, there is little value.

It’s not about counting bricks or measuring square feet.

Fair market value depends on a meeting of the minds, and the ability to perform.

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All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required. Visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park. North Georgia Photos.

 

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Rainmaker
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Teresa Cooper
SC Lowcountry - Charleston, Dorchester, Berkeley
Home Solution Real Estate Services

"Perceived Value" is another good one to add to your list, Martha!  This is what the current Owner/Seller thinks is the value of his home, typically 20% higher than FMV!

April 03, 2012 08:11 PM
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Martha Brown

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