If you’re in the market to buy or sell property, you’ll need to understand what the fair market value of a property is. And although estate appraisal is a complex field of knowledge, our estate appraisers at Jerry’s Antiques and Estate Sales can simplify the process. Here’s what you need to know about fair market value:
Estate Appraisal: Fair market value
First, let’s break down what exactly an estate appraisal is. Simply stated, an estate appraisal is the process of valuing a property based on key factors, including the following:
- The location of the property,
- The condition of the home,
- Attributes of the home (size, number of rooms, design, etc.)
Estate appraisals are done by licensed officials who need to adhere to certain regulations and standards prescribed by governing bodies in their area. There are different levels of certification awarded to appraisers.
Estate appraisals form the basis for many legal interactions including loans, legal settlements, and taxation. Therefore, these reports need to be compiled by trained and experienced persons who hold the correct certifications.
Fair Market Value
Fair market value is the estimated value of a specific property based on what a willing, unpressed buyer would pay for the property, taking into account the following:
- The real estate market,
- The attributes of the property, and
- Other key factors.
Fair market value is different from the imposed value which is set by a legal authority (which is an absolute and unchangeable value).
The key differentiators between market value and fair market value are the elements of having a buyer and seller who are both trading in a free and open market, are aware and informed of all the facts, and want to buy and sell without pressure or duress to do so.
Fair market value is the value used most often in real estate transactions because it is a much more accurate and realistic way of determining value. Where market value takes into account the price of a three-bedroom home, fair market value takes into account the price of a three-bedroom home that has recently been renovated and is located near good schools.
At Jerry’s Antiques and Estate Sales, we service the entire Tri-State area (New York, New Jersey, and Pennsylvania) with expert estate appraisers. If you’re in need of an estate appraisal contact Jerry, your estate tag sales expert, for further information.