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The 'Fair' in Fair Market Value is a Funny Thing

We all know what #TBT means by now (ThrowBack Thursday, when you put a picture from the past on your social media sites) and we're taking it a step further and bringing a little #TBT - July Edition.

We scrolled back through blog posts of July's gone by to see what was happening and how things might have changed - or not.

Perhaps our favorite and most relevant July post goes back to 2011, All's Fair in Market Values and Asking Prices. Given today's competitive buyers market with its how-low-can-you-go inventory, people often ask us, 'Am I overpaying? Is this a fair price?'

"Fair market value (FMV) is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market."

Fair is a funny thing. What's fair isn't determined by the seller, the buyer, the REALTOR® or any other parties involved in the real estate transaction. Fair is at the market's mercy. Not to mention what's fair to someone else may not be fair to you - personal preferences such as schools, commute, and whether it is a fit with your financial situation also determines what's fair.

It is important to look at comparable homes in the area, and decide whether it is a good investment based on market conditions. With good advice and a healthy understanding of what is 'fair' to you, you can make the right decision for any situation or market.

Fair enough?

YourHomeForSale Blog: July #TBT

July 2014 - Six Month Check-up

"Our predictions included prices and interest rates continuing to rise, with higher-than-normal home prices would benefit sellers. Lower-than-normal interest rates would benefit buyers. For the most part, these trends have been true to form."

July 2013 - Looking for a Sign?

"If proof of results is the best indicator of a Realtor's ability to sell a home, then our map of SOLD signs proves just that." 

July 2012 - True or False? You Will Never Be From Arlington

"So when does an Arlington newbie earn townie status? Do you have to 'marry in'? Claim a place of residence for more than twenty years? Drop your 'R's?"

July 2011 - All's Fair in Market Values and Asking Prices

"...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."

 

Image via: anibal, DollarPhotoClub