Fair Market Value (FMV) can be defined as the absolute market value of a property or a commodity, based upon which a buyer would want to pay the seller in the current market. Fair market value may differ from the value that an individual would place on the same asset or a commodity according to his/her preferences.
Fair Market Value determination is subject to numerous factors such as the place, time and the evaluation principles of those involved. It should be noted that the opinions on value is solely based on the interpretation of information available at the time of the assessment.
Why is it important to access a property value at a given time?
Any kind of a valuation of a house or a piece of land is an estimate. Moreover, even a professional appraisal turns out to be a mere opinion, but an educated one. A property value is a snapshot in time, as its value keeps on changing over time. The value of the property in question may even double up in the next few months depending on the fair market value determination. Therefore, it is crucial to access a property value at a given time.
How To Calculate The Fair Market Value?
Firstly, one needs to understand the difference between the fair market value and the fair market price. The former is the price at which the property would sell for while the latter is the price set for a property or an item after its current market value has been calculated.
- Consider every single factor responsible for influencing the value of the property. Some of these factors are, but not restricted to, the location and the use.
- Find out about similar properties being sold. Knowing about their fair market value may greatly assist in determining yours.
- The procedure requires a certain level of expertise and therefore, doing it all by yourself may not be a wise thing to do especially if you know nothing or too little about FMV. It is recommended that you approach an expert who can guide you on determining the fair market value of your property without leaving any scope for errors whatsoever.
- Keep a tab on the unusual market changes such as the real estate boom and stock market dips.
Who offers fair market value determination services?
Various companies specialize in offering FMV determination services with a highly experienced team onboard. The services offered are cost effective and can be customized based on the requirements of the customers. Most of these companies have a global presence and therefore are capable of catering to individuals from around the globe, dealing with different types of properties and items whose value is in question.