Fair Market Value Has Been Defined As:
"The highest price the
property will bring when exposed for sale in the open market
by a willing seller, allowing time to find a willing buyer,
neither buyer nor seller acting under compulsion, both having
full knowledge of all the uses and purposes to which the property
is adapted and for which is capable of being used."
This market value
definition assumes a degree of knowledge on the part of the buyer and
seller. Since this perfect world rarely exists, an estimate of price is
generally indicated as a range, rather than a specific number.
In evaluating your property, I use
many of the tools that a professional appraiser utilizes:
comparable sales, competitive listings in escrow, square footage,
location, amenities, and the general condition of the property.
I also consider the effect
of any existing financing on the property.
I research data from the
reliable information currently available from the local multiple
listing service, local real estate firms, title companies, and county
records. It does not reflect every property of comparable value for
sale now, but does represent a good cross section of the competitive
real estate inventory and recent sales.
Please note that while
none of the properties are exactly like yours, they do provide a good
reference source in a comparative market analysis.
The estimated value given
for your property does not mean that the sale of the property could not
occur at a higher price. The price you ultimately receive, of course,
will depend on your motivation, the motivation of the buyer, and market
conditions at the time offers are received.
Once I test the market at
a specific price, I make periodic reviews to ensure we remain