Are you planning on selling your old house or buying a new one? If yes then you must be wondering about the fair market value of your property. After all, calculating theFair market value is very necessary to put the property on sale or to buy a piece of property. However, fair market value is widely used in the real estate market to avoid any type of fraud and unnecessary tax penalties. If the selling and buying value is more or less than fair market value, both seller and buyer are impacted and charged. Hence, it is very important to determine the accurate value of a property. Keep reading this article to learn how to check the market value of a property Also, if you are planning to buy a property find the Property for sale Estepona to get the best deal.
Talk to a real estate agent
A real estate agent has all real estate market reports that the agent will use while figuring out the real market value of a property. They will also consider the location of the property, condition, and rate of property in that particular area. If you want to buy a home in Brisbane, your agent should be able to advise you on the particularities of the neighbourhoods. With the help of all the information, a real estate agent will give you the most accurate value of a real estate property.
Of Course, there is no shortcut or ultimate method to figure out the exact current value of a property and real estate agents are no Gods. But they use Comparative Market Analysis (CMA) to determine the value of lands and properties. And most importantly, they spend most of their time in the real estate market. Therefore, their experience ensures that you will be getting the most accurate calculation possible through a real estate agent.
Use FHFA House Price Index (HPI) Calculator
House Price Index (HPI) is an easy to use and most trustable property valuation calculator. Remember, HPI-Calculator doesn’t give you the actual value of your home, instead, it will give you an estimate by calculating a property’s last sale value to the current market value. Awesome, right? Knowing the possible value helps you determine what you can afford and what not.
Calculate the Fair Market Value of a property
In simple words, the Fair Market Value (FMV) of a property is the price it would sell for on an open market. It is also quite different from market value and majorly used in tax law and real estate markets. There are a number of methods to figure out the fair market value of a property.
The very first way is by deciding the circle rate of the area where the property is located. These rates are fixed by the state government. Although, the circle rates and market rates of real estate have huge gaps. Secondly, a brief analysis of prices of all the properties in the area is a great way of ascertaining the fair market value. However, a real estate agent or a professional property valuer can make the task a lot easier and more accurate.
There are also a number of factors that can affect the fair market value of a property. Some of these factors are as follows:
- Location:- Real estate properties and houses that are located in well-developed areas hold a higher value than those in less developed areas.
- Condition:- A property that is in a good condition can be sold at a good price.
- Age: Newer properties are worth more than older ones.
Determining the value of a real estate property is a very complex thing for a new buyer or seller. But as you understand all the aspects of the real estate market, you will soon be able to determine the accurate value of a property.
Hope this article is helpful for you. If you have any other questions then feel free to tell us in the comment section and share this article with your friends.