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What is “FULL MARKET VALUE”?

 

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I get this question often. Sellers want the most they can get for their home, but no two homes are alike. The home next door just sold for 620K. It was recently remodeled, two stories, and with a pool.

Now the seller next door thinks, “great! we can get at least 620K for ours now!”. But what the sellers don’t realize is their homes are not the same. Their home hasn’t been remodeled for 10 years, it’s single story and has a small yard. This would make the house next door, not an accurate comparable. The agent, and an appraiser will look at the homes near this house that are the same square footage, and lot size. They consider a pool, and any backyard additions, but it doesn’t weigh as much as the condition and size of a home. So instead of 620K for the sellers home, realistically they are looking at a price around 560-580K. This would be the Full Market Value of a home of this size and condition in the city it’s located.

Of course as a Seller, you have the final say of what you want to sell for. However, it is the Realtor’s job everyday to look at homes and determine what they would sell for.

Let’s Recap

Full Market Value is:

  • The Condition Of the Home
  • The Size Of The Home
  • Location Of The Home
  • Supply and Demand in the city
  • Age Of The Home