Fair Market Value (FMV)

Fair market value (FMV) is the price that a buyer and seller would agree on for a property in an open and competitive market. It is the most common measure of value used in real estate transactions.

The FMV of a property is not always the same as the asking price or the sale price. The asking price is the price that a seller is initially asking for a property. The sale price is the price that a property actually sells for. The FMV is the price that a property would sell for if it were sold on the open market today.

There are a number of factors that can affect the FMV of a property, including:

* Location
* Size
* Condition
* Amenities
* Market conditions

The location of a property is one of the most important factors that affect its value. Properties in desirable locations, such as near schools, shopping, and transportation, are typically worth more than properties in less desirable locations.

The size of a property is also an important factor. Larger properties are typically worth more than smaller properties. However, the value of a property does not always increase in direct proportion to its size. For example, a 2,000 square foot home in a desirable location may be worth more than a 3,000 square foot home in a less desirable location.

The condition of a property is another important factor. Properties that are in good condition are typically worth more than properties that are in poor condition. The condition of a property includes factors such as the age of the property, the quality of the construction, and the level of maintenance.

Amenities are also important factors that can affect the value of a property. Properties with desirable amenities, such as a pool, a tennis court, or a view, are typically worth more than properties without these amenities.

Market conditions are also important factors that can affect the value of a property. The supply and demand for properties in a particular area can have a significant impact on the FMV of a property. When there is a high demand for properties and a low supply, prices tend to go up. Conversely, when there is a low demand for properties and a high supply, prices tend to go down.

The FMV of a property is not always easy to determine. There are a number of factors that can affect the value of a property, and it is important to consider all of these factors when making an assessment. If you are considering buying or selling a property, it is important to get an appraisal from a qualified appraiser. An appraisal will provide you with an accurate estimate of the FMV of the property, which can help you make an informed decision about whether or not to buy or sell the property.