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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 
Which city in the U.S. has the longest formal name, but the shortest abbreviated name?

A 
El Pueblo de Nuestra Senora la Reina de los Angeles de la Porciuncula is the full name for Los Angeles, known as "LA".
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The Clemons Home Team, REALTOR®, real estate agent and broker for Kansas City, Blue Springs, Lee's Summit, Liberty, Kearney,  Independence and Platte City, Missouri home listings, property and land for sale - NUMBER1EXPERT

Linda Clemons
Reece & Nichols

9601 NE Barry Road
Kansas City, MO 64158
816-407-5223
Fax: 816-781-4639
iclemons@reeceandnichols.com

The Clemons Home Team is your leading source for all of your greater Kansas City, Kearney, Blue Springs, Independence, Lee's Summit, Platte City and Liberty real estate needs. Whether you are Buying or Selling a home, We know that it is one of the biggest events in your life and we are here to help you through the process.



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