how to determine fair market value of land

how to determine fair market value of land插图

The key to determiningFMV of land is to have good,complete,and current information on suitable numbers of similar properties sold most recently—typically,in the last two to six months.

How to calculate the fair market value of a property?

First,estimate the value of the land.Next,estimate the current cost of replacing the structure with a similar one.Estimate the amount of accrued depreciation.Deduct the estimated accrued depreciation amount (Step 3) from the estimated replacement cost (Step 2).Finally,add the estimated land value (Step 1) to the value calculated in Step 4.

How do you find fair market value of property?

“Information is key, and the best way to obtain a home’s true FMV is … by hiring a professional licensed appraiser.” To determine fair market value, a licensed appraiser gathers and measures the qualities of a home, such as its square footage, condition, similar homes in the area, neighborhood, market conditions, and other factors.

How do I determine fair market value?

Fair market value is defined as “the price for which you could sell your property to a willing buyer when neither of you has to sell or buy and both of you know all the relevant facts.” To determine your property’s fair market value, the best method is to compare the prices others have paid for something comparable.

What determines fair market value?

The Asset or Cost ApproachThe Market Approach,often called comparable sales in real estateThe Income Approach

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