Are you planning on selling your old house or buying a new one? If you answered yes, you’re probably curious about your home’s fair market value. After all, calculating the Fair market value is very necessary to put the property on sale or to buy a piece of property. However, fair market value is widely used in the real estate market to avoid any type of fraud and unnecessary tax penalties. Both the seller and the buyer are affected and taxed if the selling and buying prices are higher or lower than fair market value. Hence, it is very important to determine the accurate value of a property. Keep reading this article to learn how to check the market value of a property.
Talk to a real estate agent
A real estate agent has all real estate market reports that the agent will use while figuring out the real market value of a property. They will also consider the location of the property, condition, and rate of property in that particular area. If you want to buy a home in Brisbane, your agent should be able to advise you on the particularities of the neighborhoods. With the help of all the information, a real estate agent will give you the most accurate value of a real estate property.
Of Course, there is no shortcut or ultimate method to figure out the exact current value of a property and real estate agents are no Gods. But they use Comparative Market Analysis (CMA) to determine the value of lands and properties. And most importantly, they spend most of their time in the real estate market. Therefore, their experience ensures that you will be getting the most accurate calculation possible through a real estate agent.
Use FHFA House Price Index (HPI) Calculator
The House Price Index (HPI) is a straightforward and reliable property valuation tool. Remember that HPI-Calculator does not provide an exact valuation for your home; rather, it provides an estimate by comparing a property’s last sale price to the current market price. Isn’t it fantastic? Knowing the potential value can help you decide what you can and cannot afford.
Calculate a property’s FMV (Fair Market Value).
In simple terms, a property’s Fair Market Value (FMV) is the price at which it would sell on the open market. It differs from market value and is commonly utilized in taxation and real estate markets. There are several ways for determining a property’s fair market value.
The first method is to determine the circular rate for the area in which the property is situated. The state government determines these rates. Although there are significant differences between circular and market real estate rates. Second, a quick examination of all the properties in the area’s prices is an excellent approach to figure out the fair market worth. A real estate agent or a professional property valuer, on the other hand, may make the process much easier and more accurate.
There are a variety of other elements that can influence a property’s fair market value. Some of these factors are as follows:
- Location: Houses and real estate properties in well-developed areas are more valuable than those in less developed locations.
- Condition:- A well-maintained property can be sold for a good price.
- Property age: Newer properties have a higher value than older ones.
For a new buyer or seller, determining the value of a real estate property is a difficult task. But when you comprehend all the facets of the real estate market, you will quickly be able to calculate the actual worth of a home.
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