The question that home buyers and sellers often ask is: what is fair market value? The sellers want to make profit on selling their home and buyers want to purchase the bargain. This will clear some of the misconceptions:
To define fair market value is the price a buyer is willing to pay and the seller is willing to accept for a home exposed to the market and neither party is under pressure. The fair market value is determined by comparable sales of the same area similar to the home in question and with a similar floor plan: e.g. 3 bedrooms; 2 bathrooms; lounge; kitchen and dining room.
Factors that affect the market value:
- Condition of the home e.g. the exterior and interior condition of walls, doors, window frames, the roof condition, plumbing and electrical compliance.
- Square footage of the building;
- The overall condition of closets, cupboards and air conditioning;
- Proximity to amenities;
- The “view”: a home with a view of hills or a lake is worth more than a home with an obstructed view. Survey proved that a “view” can add 20% to a 100% to the market value.
The keyword to fair market value is “current”. The housing market fluctuations have shown that property value can differ easily within a short period of time. Online Real Estate listings and visits to open houses in the neighborhood can provide a good indicator of the current market in a specific area.
For expert advice we encourage you to contact us. We are friendly, professional and can accommodate all your needs in buying or selling a home.