What Does “Fair Market Value” Really Mean?

Fair market value is the price a home is likely to sell for when both the buyer and seller are well-informed and neither is under pressure.

It’s not based on:

• What you paid for the home
• How much you’ve spent on upgrades
• What your neighbor hopes to get

Instead, fair market value is determined by:

• Recent comparable sales
• Current market conditions
• Location, condition, and demand

Understanding this helps sellers price realistically and avoid sitting on the market too long.