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All's Fair in Market Values and Asking Prices

tech <div><span><b><span lang="EN" xml:lang="EN">"<i>Fair market value</i></span></b> <i><span lang="EN" xml:lang="EN">(<b>FMV</b>) is an estimate of the <a title="Market value" href= "">market value</a> of a <a title="Property" href= "">property</a>, based on what a knowledgeable, willing, and unpressured <a title="Buyer" href= "">buyer</a> would probably pay to a knowledgeable, willing, and unpressured <a title="Seller" href="">seller</a> in the <a title="Market" href= "">market</a></span></i><span lang="EN" xml:lang="EN">."</span></span></div> <div><a href= "">  </a></div> <div><span lang="EN" xml:lang="EN"><span>FMV is an interesting definition, and it makes me wonder how many realtors have assisted in the buying or selling of a home where neither the seller nor the buyer were under any kind of duress or pressure - and/or completely knowledgeable for that matter?</span></span></div> <div><span lang="EN" xml:lang="EN"><span>Probably not many. And that's not to fault the buyer or seller either - it's just the nature of the business.</span></span></div> <div><span lang="EN" xml:lang="EN"><span>I read a great article by Dian Hymer in <i>Inman News</i> about "</span><a href= ""><span>When to buy real estate above list price</span></a><span>." She points out that paying over the asking price makes sense for some people, some of the time. But certainly not for all people, all of the time.</span></span></div> <div><span lang="EN" xml:lang="EN"><span>For example, if you are buying a house as an investment property to rent and resell in a few years, it does not make sense to over bid in this market - you run a higher risk of absorbing the costs and you're less likely to recoup the value. If you are buying a house to settle down and raise a family, then it probably does, as long as you're getting a good loan and interest rate that aligns with your long-term financial goals.</span></span></div> <div><span lang="EN" xml:lang="EN"><span>As the article implies, it is important to remember that Fair Market Value is an estimate, and it is subjective based on location, timing, and personal preference. <span> </span></span></span></div> <div><span lang="EN" xml:lang="EN"><span>You wouldn't buy a home simply because 'you loved it,' - you need to look at comparable homes in the area, and decide whether it is a good investment based on market conditions.</span></span></div> <div><span lang="EN" xml:lang="EN"><span>And vice versa, you also wouldn't buy a home simply because it's a good deal for the area - you need to consider personal preferences such as schools, commute, and whether it is a fit with your financial situation.</span></span></div> <div><span lang="EN" xml:lang="EN"><span>With good advice and a healthy understanding of what is 'fair' to you, you can make the right decision for any situation or market. <span> </span></span></span></div>

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