At the crux of every real estate transaction underlies fair market value. At the end of the day most homes sold through the Multiple Listing Service will sell for fair market value.
Given well over 80% of the homes sold are sold through a local MLS, it is important for buyers and sellers to have an understanding of fair market value in real estate.
Definition of Fair Market Value in Real Estate
Fair market value is defined as the most probable selling price for a specific property where both buyer agrees to buy and the seller agrees to sell. The sale must occur with the property having reasonable exposure to the public with both parties acting in their own self interest and conditions being conducive to a fair sale. Both buyer and seller are acting fully informed and with neither party under duress to buy or sell.
The Importance of Understanding Fair Market Value As A Buyer or Seller
Is is important for both home sellers and home buyers to have a grasp of fair market value to be successful in the sale or purchase of real estate.
Odds are if you are looking to buy a home on the open market you are going to pay fair market value and if you are looking to sell a home in the open market you are going to sell for fair market value.
Fair Market Value for Home Buyers
A home can be listed at any price by a seller. It can be overpriced, it can be priced right at fair market value or it can even be under priced as we are seeing in this hot seller’s market.
You as a home buyer have invested the time to get pre-approved for a home mortgage, viewed multiple homes with your buyer’s agent and now have found a home you like!!
Find out what your home is worth– Get your homes value with my complimentary CMA (Comparative Market analysis)
This post, Understaning Fair Market Value for Massachusetts Home Buyers and Home Sellers, was provided by Kevin Vitali of EXIT Group One Real Estate In Tewksbury MA. You can contact Kevin by email at email@example.com or call 978-360-0422.
I pride myself in the quality of my work while helping buyers and sellers make dreams come true.
Real Estate Services in the northeast Massachusetts, around the Merrimack Valley, Southern New Hampshire including the towns of Andover, Billerica, Boxford, Chelmsford, Dracut, Georgetown, Groveland, Haverhill, Lawrence, Lowell, Merrimac, North Andover, Newbury, Newburyport, North Reading, Rowley, Tewksbury, Tyngsboro, Westford, Wilmington, West Newbury