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Answers (5)
Best Answer
- Dominic Adams, "DominicAdamsRealtor"
- Contributions:1
Fair Market Value is what a buyer would pay under current market conditions. In this market that would likely be very close to the appraised value since on average in the under million range 90% of homes have a mortgage and require an appraisal by a lender.
- Nathan Wolf, "natewolf"
- Contributions:1825
- Erik Bjorge, "EB Properties"
- Contributions:31
Dear "just wanna know", that is a good question.
The first thing to determine is whether you are talking about the "fair market value" given by Zillow, or from some other source. i'll assume you are talking about a Zillow "zestimate" of value for purposes of this answer.
The "tax value" is the value your local jurisdiction has assigned to your property (how they arrive at that is whole different conversation, and could vary from county to county), while the "fair market value" is a term that is an estimate of the price that someone might buy your property for today. In this case it is determined by a proprietary formula that Zillow has created in an effort to estimate market value. This formula can be fairly accurate in housing developments where the houses are similar enough that "market value" could be fairly easily determined by comparing which neighboring properties have sold for what.
But in your case (...15 acres with ... mostly farmland...) the "fair market value" given by anything other than a knowledgable Realtor is a guess, and it may, or may not be even close. your tax value may actually be a better indicator in your case.
In the end, what a buyer is willing to pay, at any given point in time, IS your fair market value, and the only way to know that for sure, is by actually selling the property.
good luck!
EB
- Melissa King, "mkingrivahrealty"
- Contributions:7
Fair Market Value is usually based upon sold comps in the area, and determines what a ready and willing Purchaser would pay for your home. Tax Value, well that is basically what the county thinks your home is worth, in my experience they locate your land on the tax map and sometimes will come out and evaluate and then they determine what it is worth. Counties vary, but some counties only assess on a percentage of the value. Hope this helps!
How is fair market value different from tax value?
I'm tlking about acreage..like about 15 acres with road frontage on one side. Mostly farmland.
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