You have decided to put your house on the market. As a seller you have made the decision either to go with a realtor or sell it on your own. Now you need to decide how much you will be able to ask for your house. There are several factors that are going to contribute to your final fair market value on the home.

What is Fair Market Value?

When considering selling a home many people think they simply choose a price. Their decision may be based on what they still owe on the home or what an appraiser has said it is worth. Fair market value is a term tossed around in the real estate world. But exactly what is fair market value?

Most real estate experts suggest that fair market value is determined by the current state of a home in combinations with the chances of its sale within a few months. But these factors are determined by the rest of the market, too, typically the current condition of your home in contrast to those similarly outfitted, and what they are selling for in a comparable location.

Market Value Can Vary

So fair market value is going to be the figure your home will sell for in a reasonable amount of time, usually within one to three months. There are several factors that help determine what the fair market value will be for your particular home.
One of these factors is what similar houses are selling for in your community or city. The same house can sell for a completely different price, depending on the location. A home in a small rural setting may not sell for the same price it would in the middle of New York City.

Reasonable Time Frame

Research the housing market in your community. Houses that sell in a very short time are probably priced too low so they are snatched up quickly. Houses that sit on the market for months and months are most likely priced to high. Your fair market value is going to be somewhere in the middle, priced to sell within one to three months, a reasonable amount of time to have it on the market.

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