Steps To Determine The Fair Market Value Of Your Home
The FMV or fair market value is what a property would sell for in the real estate market. The following conditions can effect this:
One is that the buyers and the sellers act in their best interest and under no pressure. Knowing the property and there being an reasonable amount of time to complete the transaction of the sale.
If these circumstances remain, the FMV should be close to what the property is actually worth. When the property is involved in a divorce, when eminent domain is being exercised or an estate settlement this becomes extremely important. It's very important for the owner of the home to know the home's fair market value because it helps them to know the actual value of the property and ensures they won't be taken.
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.
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.
The next step would be to get an appraisal of your home. Have an inspection conducted on your home by an appraiser. The appraiser will take into account the homes general condition, the integrity of the structure, any renovations or alterations to the property. The appraiser will find his own comps as well. He will compare your homes condition and upgrades to those that have sold in the area. The appraiser's estimate of your property is most likely the accurate value of the house.
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.
The FMV is an important number because when it comes to selling your home you want to make sure you get what it's worth or maybe more. The above steps can help you determine an accurate number when looking for your homes fair market value.
One is that the buyers and the sellers act in their best interest and under no pressure. Knowing the property and there being an reasonable amount of time to complete the transaction of the sale.
If these circumstances remain, the FMV should be close to what the property is actually worth. When the property is involved in a divorce, when eminent domain is being exercised or an estate settlement this becomes extremely important. It's very important for the owner of the home to know the home's fair market value because it helps them to know the actual value of the property and ensures they won't be taken.
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.
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.
The next step would be to get an appraisal of your home. Have an inspection conducted on your home by an appraiser. The appraiser will take into account the homes general condition, the integrity of the structure, any renovations or alterations to the property. The appraiser will find his own comps as well. He will compare your homes condition and upgrades to those that have sold in the area. The appraiser's estimate of your property is most likely the accurate value of the house.
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.
The FMV is an important number because when it comes to selling your home you want to make sure you get what it's worth or maybe more. The above steps can help you determine an accurate number when looking for your homes 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.
