The FMV or fair market value is what a property would sell for in the real estate market. The following conditions can effect this:
The buyer and the seller are informed about the property, they are not under pressure and act in what they believe is their best interest. Also, the time table for the transaction to be completed must be reasonable.
Under these circumstances, the actual value of the home and the FMV should be close. This is crucial for a home involved in eminent domain being exercised, a settlement of an estate or a divorce settlement. A homeowner knowing the fair market value of their home can prevent them from being taken advantage of as well as knowing the actual value of their property.
In order to determine the fair market value of your home there are three steps you can take to get an accurate number. This number will help you to get all the value out of your home during a sale.
This first step you want to take is finding out what the other homes that are similar to your's sold for in your area, these are called comps. You should also look for homes that are currently listed like your's by asking a real estate agent to look on the MLS or by using websites like Zillow.com or realtor.com.
After you have done that, the next thing you want to do is to get an appraisal of your home. It is advised to use a licensed inspector to do this appraisal. This individual will take into account the overall condition, the quality of the structure itself and any remodel work that has been done which changed the home substantially. He will then compare his findings to those in the surrounding area.His final estimate will be very close to the target fair market value of your home.
Following the appraisal, you must determine the cost of replacement. Find out the value of your land and what the house would cost to replace. Determine the cost of labor and materials. This is important if there are not many similar homes in the neighborhood to find comps. This technique should bring you close to the actual fair market value.
This number is important to have when trying to sell your home and to avoid excepting less than your home is worth. All or any of these steps can accurately calculate the property's fair market value.
The buyer and the seller are informed about the property, they are not under pressure and act in what they believe is their best interest. Also, the time table for the transaction to be completed must be reasonable.
Under these circumstances, the actual value of the home and the FMV should be close. This is crucial for a home involved in eminent domain being exercised, a settlement of an estate or a divorce settlement. A homeowner knowing the fair market value of their home can prevent them from being taken advantage of as well as knowing the actual value of their property.
In order to determine the fair market value of your home there are three steps you can take to get an accurate number. This number will help you to get all the value out of your home during a sale.
This first step you want to take is finding out what the other homes that are similar to your's sold for in your area, these are called comps. You should also look for homes that are currently listed like your's by asking a real estate agent to look on the MLS or by using websites like Zillow.com or realtor.com.
After you have done that, the next thing you want to do is to get an appraisal of your home. It is advised to use a licensed inspector to do this appraisal. This individual will take into account the overall condition, the quality of the structure itself and any remodel work that has been done which changed the home substantially. He will then compare his findings to those in the surrounding area.His final estimate will be very close to the target fair market value of your home.
Following the appraisal, you must determine the cost of replacement. Find out the value of your land and what the house would cost to replace. Determine the cost of labor and materials. This is important if there are not many similar homes in the neighborhood to find comps. This technique should bring you close to the actual fair market value.
This number is important to have when trying to sell your home and to avoid excepting less than your home is worth. All or any of these steps can accurately calculate the property's fair market value.
About the Author:
Find out more about how to determine your homes fair market value by visiting The House Source. This is a valuable resource for anyone interested in real estate or real estate investing. Buying and selling property can be tricky. One wrong move could cost you thousands of dollars. Don't let this happen to you.
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