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About Appraisals >Fair Market Value

What is the best price for a piece of real estate? Mortgage lenders, appraisers, and real estate brokers use what is called the "fair market value" (FMV). FMV has been defined as "the price that a buyer is willing to pay and the seller is willing to accept, when both parties are knowledgeable about the property and neither is under any time pressure to buy or sell". Sounds great, but how is this price determined?

The starting point for determining a fair price may be an opinion of the value or "comparative market analysis". Such an analysis uses information on similar properties which are: 1) currently for sale, 2) already sold, or 3) expired properties (those which did not sell). Local, national and international trends and market conditions must also be evaluated.

By comparing similar properties in each of the three categories and the market conditions, appraisers, lenders and agents come very close to the maximum price that buyers would be willing to pay for a house.

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Q	What is currently the most sought-after amenity in the majority of upscale homes?
A	Technology that "enables" a home with features such as structured integrated wiring and broadband Internet access is the current amenity of choice.
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Lexington Home Link, REALTOR®, real estate agents and broker for Lexington, Georgetown and NicholasvilleKentucky home listings, property and land for sale - NUMBER1EXPERT(tm)

Lexington Home Link
Keller Williams Bluegrass Realty
2424 Harrodsburg Rd., #101
Lexington, KY 40503
Tel: 859-509-4226
Fax: 859-269-0065
Toll Free: 888-509-4226
Email: lexhomelink@aol.com
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