{"id":34341,"date":"2019-11-12T12:40:51","date_gmt":"2019-11-12T17:40:51","guid":{"rendered":"https:\/\/bhgrealestateblog.com\/?p=34341"},"modified":"2024-12-30T11:03:28","modified_gmt":"2024-12-30T16:03:28","slug":"fair-market-value-home","status":"publish","type":"post","link":"https:\/\/bhgrecareer.com\/bebetterblog\/fair-market-value-home\/","title":{"rendered":"How to Determine the Fair Market Value of a Home and Get More Leads"},"content":{"rendered":"\n

The first question in the minds of buyers\nand sellers is, \u201cHow much is the house worth?\u201d Many variables exist that determine\nthe bottom-line value of a home. The smartest place to begin is the fair market\nvalue (FMV). FMV is the price house listings would sell for in a logical\nsituation where the buyer and seller have full disclosure and act on their own\nfree will. Discover how to determine the fair market value of a home and get\nmore leads.<\/p>\n\n\n\n

The Not-So-Subtleties of Fair Market\nValue<\/h4>\n\n\n\n

The concept of fair market value sounds\nsimple despite its complexity. The price a house would command during the\ncurrent market is the FMV. However, this price can go up and down like a roller\ncoaster based on a variety of factors. For example, a family might be\ndetermined to purchase a home within a specific school district, driving up the\nvalue of these houses. Or a local crime wave could negatively impact the value\nof houses located on a particular street. Agents with a finger on the\nneighborhood pulse and area news trends<\/a> succinctly\nunderstand the not-so-subtleties of fair market value. The bottom line is a\nhome is worth whatever a qualified buyer is willing to pay for it.<\/p>\n\n\n\n

Work With Licensed Appraisers<\/h4>\n\n\n\n

A real estate agent should have at least\none licensed appraiser on speed dial. Some agents take appraisal courses to\noffer this service to clients and potentially generate another source of\nincome. Licensed appraisers can provide essential documentation for financing,\nclosing, and more. Plus, they know the regional and neighborhood markets well\nenough to help determine a fair listing or selling price when the value is in\nquestion. Investing in a professional appraisal can be the secret sauce to\nlanding tough clients.<\/p>\n\n\n\n

Use Basic Valuation Tools<\/h4>\n\n\n\n

In many instances, it could be\nimpractical to hire a professional appraiser. Agents have access to a wealth of\nresources for home valuations. Rely on public records to make educated\nassessments. Review deeds, tax assessments, and property transfers to determine\nlisting and sales prices in the area. Consider comparable features, such as\nwhether the home has three bedrooms and two bathrooms. With a dash of\nmathematical magic, an agent can determine the right pricing in the current\nmarketplace.<\/p>\n\n\n\n

Keep Up With the Comparables<\/h4>\n\n\n\n

Comparable sales help agents figure out\nthe estimated fair market value of a property. Agents can pull all the recent\nsales in the area of homes in similar neighborhoods with the same basic\nfeatures. A summary of this data is called a comparative market analysis (CMA).\nAgents can generate more leads by offering a comparative market analysis to\npotential sellers. And, these savvy agents are also most likely to negotiate a\nfair deal for buyers. Use a few resources to come up with a CMA, including:<\/p>\n\n\n\n