Fair Market Value = How to sell your property for the best price, in the shortest amount of time with the most favorable terms and conditions.
FACTORS AFFECTING VALUE
> Supply & Demand
> Seasonal Markets
> Mortgage Market
> Economic Conditions
> Political Actions
> Location, Location, Location
METHODS OF EVALUATION
Market Value Approach | Using comparables sales
Income Approach | Used primarily for income properties
Cost Approach | Used primarily for insurance and replacement value purposes
Market value approach is the highest value, estimated in terms of money, which a property will bring if exposed for sale in the open market, allowing a reasonable time to find a willing purchaser in current market conditions.
- 30This diagram shows the segments of prospective purchasers who are likely to want to see your property based upon the relationship of your asking price to its fair market value. CUSHION FOR NEGOTIATION? If you want to have a cushion for negotiation you must still have people to negotiate with. …