What is a Fair Market Value? Is it the one which benefits the seller? Or the buyer? Or both? This blog deals with the basic idea of Fair Market Value.
The definition says
It is the value at which a willing buyer is ready to sell their property to a willing seller , both not being under any obligation to make the transaction & both having equal knowledge of the relevant facts
Let’s try to analyse this word by word
Willing seller:
A willing seller is the person who wants to sell the property & is in no hurry to get their property sold. What if seller is in hurry? The value of the property falls.
Willing buyer:
Just like the willing seller a willing buyer is the person who wants to buy the property & is in no hurry to buy it. What if buyer is in hurry? The value of the property increases.
Obligation to buy:
If any party were to have obligation to sell because of their personal financial conditions or otherwise , the price will be affected & it can not be called a fair trade.
Knowledge of the relevant facts:
If the buyer or seller does not have the knowledge relevant to the field Eg. Marketability of the property, legalities regarding the property, potential of the location etc. either party may feel cheated after the transaction
Role of Sahasrabuddhe valuer:
We, at Sahasrabuddhe valuers, analyse the properties meticulously from all sides in order that the trade is Fair & both the parties feel satisfied. To support this we give you a detailed analysis of the area, of the legalities regarding the property & a real-time snapshot of the potential of the area in which the property is located