Market price, on the other hand, is the actual amount that a property sells for in a given market. This price may actually be higher, lower or equal to the fair market value estimate. In order to estimate market value, it’s possible for you to use the same tools and methods that professional appraisers employ.
Unfortunately, neither of these factors has anything to do with the actual market value of the home. The list price pertains to homes that are currently listed for sale. The sale price shows what the home actually sold for, so it’s a better indicator of fair market value for a particular house.
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A home’s fair market value is the price it would sell for in a perfectly logical world-one where both home buyer and seller are acting of their own free will (in other words, they aren’t desperate.
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Calculate the fair market value of the home. Take the average sold price and divide it by the average square footage to get the average price per square foot in the local market. Then take that amount and multiply it by the square feet in the home. This will give you the fair market value of the home.
How to Determine Market Value for Your Home. When planning to sell your home, coming up with the right price can seem like a very difficult process. There is a lot of data to sift through and you might feel a little lost. With some careful.
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The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.
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Fair market value (FMV) is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market.An estimate of fair market value may be founded either on precedent or extrapolation.