Market value – The market value of a property determines the combined value of a property in terms of location, popularity and material value. When a property is to be sold, the purchase price is based on the fair market value of the property. An appraiser prepares a market value appraisal that sellers and buyers can use as a guide. Land that has not yet been developed is appraised according to standard land values and developed land is also appraised using the asset value method.
Fair Market Value at a Glance: Factors for determining the price
- Market value of a property is formed from location, popularity and material value
- The purchase price of a plot of land is based on its market value
- Appraiser prepares market value appraisal to which buyer and seller can orientate themselves
- Undeveloped land is valued according to standard land values and developed land is valued according to the tangible asset method.
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