What Is Fair Market Value? How Much a Home Is Really Worth MABA Massachusetts RealEstate FirstTimeHomeBuyers

Whether you’re buying or selling a home, one question that’s always front and center is the price: How much is it worth? That’s a tricky question to answer, but probably the best starting point is to know a home’s fair market value, or FMV.

A home’s fair market value is the price it would sell for in a perfectly logical world—one where both home buyer and seller are acting of their own free will (in other words, they aren’t desperate to make a sale) and are reasonably aware of a home’s good and bad points, and where the buyer could just as easily choose a different house that suits her needs better.

In such a world, market forces reign. Buyers and sellers negotiate up or down from their various positions and agree on a home’s price. Deal done. All is good! Another arm’s length transaction concluded to everyone’s satisfaction.

Fair market value vs. market value: What’s the difference?

A home’s fair market value is comparable to a home’s market value—what it would fetch on the open market—but is used in………………

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FIRST TIME HOMEBUYERS