What Does “Fair Market Value” Really Mean?
pastormiguel • January 8, 2026
Let's evaluate what this truly means..
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.
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