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Real Estate Tips
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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Real Estate Trivia
Q 
What is considered one of the few remaining tax shelters in the 1990s?

A 
Homeownership--property taxes on a residence or vacation home are deductible up to $1 million.
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The Bernick Homes Group, REALTOR®, real estate agent and broker for Savage, Prior Lake and Burnsville, Minnesota home listings, property and land for sale - NUMBER1EXPERT(tm)

The Bernick Homes Group
Bernick Homes Group

13875 S Hwy 13, Suite 100
Savage, MN 55378
Lee: 612-269-8914
Julie: 612-269-9075
BernickHomes@NUMBER1EXPERT.com

We are top agents in the South Metro area of Minneapolis. Our business is built on knowledge of our area and exceptional customer service. For more information, please feel free to contact us at 612-269-8914!


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