Financial
Fair Market Value
The price a property would sell for on the open market, assuming a willing buyer and seller, both with reasonable knowledge of the facts, and neither under pressure to act. Fair market value is determined through comparable sales, appraisals, and market conditions. It can differ from the listing price, assessed value, or the amount a buyer is willing to pay in a bidding war.
Why It Matters
Fair Market Value directly affects how much you pay for your home and how you build wealth through homeownership. Understanding the financial mechanics of your mortgage helps you make choices that save money over the long term.
Use mortgage calculators to see how fair market value impacts your specific numbers. Even small differences in financial terms can add up to tens of thousands of dollars over the life of a 30-year mortgage.