How do you estimate market value?

Answer 1

Market value is the price at which an asset would trade in a competitive Cardinal auction setting. Market value is often used interchangeably with open market value, fair value or fair market value, although these terms have distinct definitions in different standards, and may differ in some circumstances.

Real Estate

A local real estate agent would compare the property to similar properties in the area that have recently been sold to arrive at the fair market value.

Answer 2

Fair Market Value can be found in the following 3 ways:1.Income Approach - determines present worth by estimating future benefits.

2.Cost Approach - bases value on original cost less deductions including depreciation, physical deterioration, utilization etc.

3.Market Data Approach - Uses the analysis of recent sales and/or offerings made of similar property.

Answer 3

Market Value is defined as the amount that a willing buyer will pay for an item and a willing seller will take for that same item. This makes determining fair market value very difficult because any two buyers and or sellers may agree.

Generally the best way to attempt to place a fair market value on any item it to check on what similar items are selling for in the marketplace and then add or subtract from that amount according to the condition and other variables for the item for which you are trying to determine value.

Also you must remember in your calculations that there may be several markets for a particular item. IE autos may be sold by individuals or dealers or auctions. Normally a dealer would be required to do clean up, reconditioning and checking of the car's systems and to provide some sort of warranty before placing it on the market while an individual might not.

Additionally, one can seek help to a real estate appraiser to evaluate the current value of your property in regards to the current market status of your area.