Anyone who has tried to buy or sell a home has certainly heard a lot about the fair market value, or FMV, of the property. Similarly, everyone who must pay property taxes or claim a property-based deduction must determine the FMV.

In the investment real estate market, this is also standard language. Unfortunately, there is no simple or universal method for determining real estate market value. Almost all market valuations, however, are based on two factors: real estate evaluations and recent comparable sales.

It’s especially difficult in today’s market, where real estate agents can be shady and don’t always promote the pricing of properties for sale. So, how do you figure out how much it’s worth or how much other homes are worth? Well, in this article you will get to know everything about property value estimates NZ.

What is market value?

The market value of Auckland property valuations is exactly what the market is willing to pay for it. Now, just as real estate may place a higher value on your property, your bank may place a lower value on it. A market valuation occurs when a buyer and seller come to an agreement on the property’s true value. It’s similar to when you’re trying to buy stock: the present market value of the stock is only what the market is ready to pay right now.

Appraisals and comparable sales

Appraisals are nothing more than expert valuation views. Normally, the bank that makes the house loan chooses an appraiser to provide an opinion on the valuation of real estate as of a specified date during a home transaction.

The most typical method for determining market value is through comparable sales, commonly known as the “market data” approach. Recent sales of value of my home NZ of similar stature are examined in order to make an informed decision.