How do I calculate the fair market value of my home?
Check Recent Sales Prices Divide the average sale price by the average square footage to calculate the average value of all properties per square foot. Multiply this amount by the number of square feet in your home for a very accurate estimate of the fair market value of your home.
Who determines the fair market value of a property?
The buyer and seller of real estate determine the fair market value of real estate. The appraiser or assessor analyzes real estate transactions that occur within a community and determine the factors that lead to the final sale prices.
What is the difference between appraised value and fair market value?
An appraised value is an expert’s best estimation of what the entity is worth, while the fair market value is what it should sell for. The appraised value and the fair market value, in theory, should come out to the same amount. However, that often proves not to be the case in practice.
How market value is determined?
Market value—also known as market cap—is calculated by multiplying a company’s outstanding shares by its current market price. If XYZ Company trades at $25 per share and has 1 million shares outstanding, its market value is $25 million.
What happens if a house appraises for less than the sale price?
Appraisal is lower than the offer: If the home appraises for less than the agreed-upon sale price, the lender won’t approve the loan. In this situation, buyers and sellers need to come to a mutually beneficial solution that will hold the deal together — more on that later.
How much is my house worth?
Figuring out how much your house is worth begins with an inventory of its specifications and features. Be advised that municipal officials also assess the value of your home to calculate property taxes owed. Describe your home according to its size, type and location. For size, take note of the home’s number of rooms and total square footage.
What is fair market value?
The fair market value is the price an asset would sell for on the open market when certain conditions are met.
What is a fair market analysis?
A real estate fair market value analysis, more commonly referred to as a comparative market analysis (CMA), is a detailed report examining the homes currently on the market, under contract, recently sold and recently expired, withdrawn or canceled to determine what a property is worth in the current market.