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Fair Market Value or FMV

Fair Market Value or FMV

A term used in real estate that refers to the price at which a property would sell in an open and competitive marketplace. This concept of FMV is important in determining how much a property is worth, and it plays a crucial role in a variety of real estate transactions, such as buying, selling, and refinancing. The FMV is determined by various factors, including the property's location, size, condition, age, and other market conditions. For instance, a house located in a desirable neighborhood with modern features and in good condition may have a higher FMV than a similar house in a less desirable location or in poor condition. It is essential to determine the FMV accurately, as it impacts the amount of financing a buyer can obtain and the amount of equity a seller has in their property. In conclusion, having a solid understanding of FMV is crucial when navigating the real estate market, whether you are a buyer, seller, or investor.
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