To understand “fair market value” one has to look into the
meaning of comparable prices. Comparable
prices are the major factor that determines the market value. When buying a
home in a neighborhood the value is determined by recent sales of homes in the same
area. Houses that are similar in size (floor plan) and with similar rooms e.g.
a dining room, a kitchen, two bathrooms, a lounge and four bedrooms. The most
important factor of the comparable prices is the current market. The market is
found to be able to change over a short period of time. The value of a property
can not be based on historical data.
There are more aspects that can influence the market value
such as the condition and the location of the property. To get an idea of what
to consider, the following list can be of help:
·
The proximity to amenities;
·
A home with an obstructed view is worth less
than a home with a view of mountains, the ocean or a lake.
·
Noise polluted area;
·
Is the property situated close to busy roads
where heavy, continues streams of motor vehicle traffic occur;
·
The condition of the roof and the exterior of
the house;
·
The interior condition of the walls, window
frames, doors, ceiling and plumbing;
·
The condition of the electrical compliance;
·
The size or square footage of the home;
·
The security systems installed;
·
A well established garden and swimming pool will
add to the value of the property.
Your Real Estate Agent is fully equipped to calculate the
fair market value of a home. Your agent will guide and assist you to price your
home correctly when selling. When buying a home your Real Estate Agent will
help you to make the right offer.