The Appraisal Shop, llc

All Matters of Residential Real Estate Valuation, Consulting & Sales

CALL US

for a free Consultation or Quote

770-645-1663

SERVICES & INFORMATION

The following definition of market value is based on Fannie Mae's definition taken directly from the FNMA form 1004 URAR that appraiser's use for conventional mortgage lending purposes.

 

Market value is the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.