FMV Calculations: What Influences a House's Fair Market Value?

The value of a home in any area isn't always consistent, but you can get a fairly accurate price. Learn about the house fair market value here.

There has never been a more urgent time to understand the true value of your home.

Home values are falling across the US, with Salt Lake City being one of the worst affected metro areas in the country. If you are planning on selling up and want to avoid some serious losses on your investment, your first step should be to determine your house fair market value or FMV.

This is the most accurate estimate of what you can get for your property and an essential starting point before you put it on the market. Here's how fair market value is calculated. 

Market Conditions

One of the most impactful factors on your FMV is the local market conditions. This largely comes down to supply and demand.

Are there more buyers than sellers in SLC? Do buyers want the type of home you are selling? How are market factors such as interest rates and property taxes shaping demand?

All of these will inform your FMV calculation when this is performed by an experienced real estate expert or appraiser. 

Location

One of the golden rules of real estate is that it all comes down to location, location, location.

Is your home in a desirable neighborhood? Is it located downtown, close to the action? What are the schools like in the area? What kind of transport links does your neighborhood offer?

There's a reason why a home can cost $1 million in Yalecrest while an identical property will go for half of that in Glendale. Where you are matters. 

Property Features

When considering the buyer audience, you need to remember that for most, a home is not just an asset. It is somewhere the buyer wants to live in, probably for a long time. As such, there are certain property features that tend to impact positively on your overall FMV.

These include updated appliances and fixtures, amenities such as a swimming pool or rec room, generous outdoor space, and high energy efficiency. With the right features, even a poorly located property can net a high FMV. 

Pricing Strategy

While this isn't about FMV per se, this is one factor influencing how much you will get for your house that you are in control of.

Your pricing strategy is how you attract the right buyers and get a realistic offer. You can choose to be competitive, putting a lower price to attract more interest, which could result in a higher sale price if you are able to start a bidding war.

If you're confident in the USP of your home, then a higher price might be a gamble that pays off. Always consult a real estate professional when it comes to price negotiations and sale conditions. 

Get the House Fair Market Value You Deserve

It's not an easy time to sell a home in Salt Lake City. However, in matters such as these, knowledge is power. By getting professional help to calculate your true house fair market value, you can set a price and a sales strategy that will get you the final result that you want and deserve.

For thisreason, we are here to help. Get in touch with our expert, local team at Susie Martindale Group to find out exactly how we can help you.