Fair Market Value is an estimate of how much your property would fetch you in the near future. You could calculate it if you want to sell your property or to simply find out the financial worth of your property. It can never be exactly predicted but some measure of accuracy can always be achieved if the calculation is made properly. The following points would be helpful in this matter:
Hire A Professional Appraiser
The job of an appraiser is to carefully review each and every aspect of the object they are appraising and then put forward an unbiased view about its value. Also, appraiser’s opinion can be trusted because it is backed by their education, experience and knowledge in the field. It would be prudent to hire an appraiser for your property because then the deviations from the actual fair market value would be very less, if any. If you’re in UK, you might want to get in touch with Chartered surveyor London for best guidance.
Advertise Your Property
Fair Market Value is nothing but the amount a buyer would want to pay. Therefore, the best way to find out about the accurate fair market value of your property is to put it up as an advertisement in the newspaper or a website. You would receive many offers and the general trend of the amount offered would give you an idea about the fair market value. You could take the highest price as the fair market value. It would also be important to read the terms and conditions of the website you put the advertisement on. For example, if you are putting up your property on an auction website, you will have to sell it to the person who bids the highest. So, if you are not planning to sell your property, this would not be an ideal place to advertise.
Research About Similar Property Sales
This would be helpful if you are not really interested in selling your property but merely want to know the general price it will fetch. You simply need to browse some real estate and auction websites to find out about the price trend. They will let you into a database that has all the recent sales along with the prices to give you a general idea.
It is always prudent to select a property that is similar to yours when you are trying to gauge the price trend. Try and keep it in the last 6 months range and it should also be located in the same area as your property. The number of rooms, locality, quality of the neighborhood and the property area should be comparable. Also, you would need to make allowances for market fluctuation if the market is hot at the moment.
Because of the number of uncertainties involved, you can never accurately estimate your property’s Fair Market Value until you have actually finalized on a buyer. There are always some uncontrollable things that cannot be taken into account. Always keep a small scope for changes in the projected price your property will fetch.
I would think the best way to determine fair market value would be to call a REALTOR? Guess they forgot that one?