So what is the fair market value? This value determines how much you can sell your home for in the current market. There are two things that can impact the value of your home.
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.
If these circumstances remain in the equation then the actual value of the property and the FMV should be about the same. If the property is involved in an eminent domain situation or a divorce this can be especially important to ensure that the homeowner does not get taken advantage of.
There are multiple ways of determining the FMV of a home. Below are the necessary steps to conduct an analysis of your properties value.
Conducting a Comparative Market Analysis of the neighborhood is the first step to take. Find similar properties to yours and discover how much each of them sold for. You should also find homes that are similar to yours that are on the market now and note their asking prices. If you do not personally know a real estate agent or know someone who does, websites such as zillow.com and realtor.com are great places to find comparative market analysis.
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.
Once the appraisal is complete the last step is to find out the complete cost of replacement for your home. This cost includes the value of the land in which your house sits as well as the cost, including labor and materials to replace the entire home.This is very necessary to determine if there are no homes like your in the area to get comps from. This is another way to bring you an accurate number of your homes FMV.
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.
If these circumstances remain in the equation then the actual value of the property and the FMV should be about the same. If the property is involved in an eminent domain situation or a divorce this can be especially important to ensure that the homeowner does not get taken advantage of.
There are multiple ways of determining the FMV of a home. Below are the necessary steps to conduct an analysis of your properties value.
Conducting a Comparative Market Analysis of the neighborhood is the first step to take. Find similar properties to yours and discover how much each of them sold for. You should also find homes that are similar to yours that are on the market now and note their asking prices. If you do not personally know a real estate agent or know someone who does, websites such as zillow.com and realtor.com are great places to find comparative market analysis.
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.
Once the appraisal is complete the last step is to find out the complete cost of replacement for your home. This cost includes the value of the land in which your house sits as well as the cost, including labor and materials to replace the entire home.This is very necessary to determine if there are no homes like your in the area to get comps from. This is another way to bring you an accurate number of your homes FMV.
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.
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To learn more about your homes FMV visit this site, and for more real estate related topics this is a good location.
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