September 10, 2016
What Is Fair Market Value? How Much a Home Is Really Worth…..
I was at my Tuesday Realtor meeting and we discussed appraisals and the challenges people have with them. this article comes from http://www.realtor.com/ by Kimberly Dawn Neumann and it talks about what a home is worth.
“Let’s be clear about one thing: There is no exact mathematical formula that calculates fair market value,” says mortgage lender Michael Sema, CEO of Get a Rate. “Information is key, and the best way to obtain a home’s true FMV is … by hiring a professional licensed appraiser.”
That is true and like we do not know that. The key is knowing the information on the neighborhood and having detailed knowledge of the recently sold homes. For example make sure the Bathrooms and bedrooms are the same. If a home the same square footage has less bathrooms then your property may be worth more because if it, Another may be more garage space, Remodeled home versus on that is not. In Ohio a finished basement will get you a better appraisal than a non-finished.
If you are doing any remodeling or upgrades keep strict records. Also do before and after pictures so the appraiser can see the difference. I do that for all my clients. Having the differences and knowing them can get you a better appraisal.
“If, say, a family is desperate to buy a certain home because it’s in a coveted school district and their twins are entering kindergarten that fall, they might be willing to pay substantially over a home’s fair market value. Or if a home seller has fallen ill and has to sell quickly to cover medical bills, he or she might be willing to settle for less than a home’s FMV.”
I have seen this a lot from buyers that have children or will be having children. They really check the school systems and buy pay more for homes in the desired areas. It is so important to understand this when buying a home to live in or add to your portfolio. Your will get more equity in most cases in the better school districts.