What is “Fair Market Value?”
As a rule, fair market value is arrived at by a real estate agent preparing a “Competitive Market Analysis.” This is a comparison of recently sold properties, properties currently for sale, and properties that did not sell. The comparison is made with “like properties” or properties that are similar in location, size, style, age, etc.
It is important to not that a CMA is not an appraisal and should not be used to obtain a loan, refinancing, etc,
A more technical definition and one with general application is, “Fair Market Value is the price for property which would be agreed upon between a willing and informed buyer and a willing and informed seller under usual and ordinary circumstances.”
Today approximately 84% of buyers start their property search on the Internet. They are looking at as many homes as they can and are comparing these to new homes that are for sale. They are also retaining REALTORS® to represent them as the Buyer’s Agent.
As a buyer’s agent, one of the REALTORS® fiduciary duties is to help the buyer locate a suitable property and “evaluate property values,” neighborhood, and property conditions.
The home buying and selling market is always changing. It will be swinging towards either a buyers' market or a sellers' market, or sometimes a little of both.
We believe that for the Sellers to attract them to their property, the Seller (or their agent) must be able to prove the value of the home.
Sellers can accomplish this by staging the home for show, pricing it to reflect marketplace realities in Star Valley, and by their agent preparing a marketing plan to expose the property to reach the largest number of potential buyers and/or their REALTORS®.
