What is “Fair Market Value”

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What is “Fair Market Value” anyways?    The easiest and best way to describe this to a Buyer and a Seller would be this … fair market value would be the highest price that a buyer would be willing pay in the given time for that particular product and the lowest that the seller would be willing to accept as payment in return for their product.  Like many industries the Real Estate lending companies will still need to determine value through what is called an appraisal. As long as the appraisal comes in for the agreed price the deal will move forward in that regard.  If the appraisal comes in lower then the buyer will need to pay the difference or the seller will need to lower the price based upon what is agreed.  Usually this is a market based decision, in a buyers market the seller reduces, in a sellers market the buyer many times will pay the difference.

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