FAIR MARKET VALUE
Fair Market Value = How to sell your property for the best price, in the shortest amount of time with the most favorable terms and conditions.
FACTORS AFFECTING VALUE
> Supply & Demand
> Seasonal Markets
> Mortgage Market
> Economic Conditions
> Political Actions
> Location, Location, Location
METHODS OF EVALUATION
Market Value Approach – Using comparable sales
Income Approach – Used primarily for income properties
Cost Approach – Used primarily for insurance and replacement value purposes
Market value approach is the highest value, estimated in terms of money, which a property will bring if exposed for sale in the open market, allowing a reasonable time to find a willing purchaser in current market conditions.