Fair Market Value

The key to investing in real estate and structuring a good deal is your ability to know the fair market value (FMV). Keep in mind that the asking or listing price is not necessarily the fair market value but simply what the seller wants. They could have been pulled from the air or the Realtor may have suggested the price. Following are four quick ways to determine the FMV:

1. 1. Comparable Sales -
   Contact a Realtor and ask for some comparable sales in a specific community or area. They have access to past sales records and can provide you with a list of the most recent sales on comparable properties in the area. This will give you an idea of the FMV in the community.
2. 2. Courthouse Records -
   A visit to the courthouse can help you find the recent sales information for houses in a specific community. In some areas you may also be able to access this information online. Research properties with the most recent sales in the community.
3. 3. Tax Assessed Value -
   The county government tracks property values to assess property taxes each year, however most tax assessments are below market value. If you do an average in your community and you will ind that they are consistently at a rate below market value, for example 80% of market value.
4. 4. Professional Appraisals -
   Professional appraisers can provide an appraisal or estimate of whata property would sell for under normal market conditions for a fee.

The most basic and commonly used method of value estimation of single-family detached and duplex/quad is the comparable method.