How to Find the Fair Market Value of a House
If you’re getting ready to sell your home — or just curious what it’s really worth — one of the first questions you’ll want to ask is: “What’s the fair market value of my home?”
The answer? It depends. And it’s more complex that what your tax bill says or what you can dig up online.
So, without further ado, here’s what you need to know about finding the fair market value of a house today and how it differs from assessed, appraised, and market values.
First Things First: What Is Fair Market Value?
Fair market value (FMV) is the price a property would sell for on the open market, under normal conditions, with a willing buyer and seller (neither is under pressure to close).
It’s not based on emotion, your renovation budget, or what your cousin’s friend heard around the town. It’s based on:
- Location
- Condition
- Recent comparable sales (comps)
- Market demand
- Upgrades and features
In short, fair market value reflects what a buyer would reasonably pay for your home today.
Do you have more questions about selling your home? Check out these posts next!
- How to Prepare Your Home for Showings
- Is Selling without a Realtor a Good Idea?
- 9 Small Details that Can Make or Break Your Home Sale
Fair Market Value vs. Appraised, Assessed & Market Value
Let’s break it down:
| Value Type | What It Means | Who Uses It |
|---|---|---|
| Fair Market Value | Likely selling price in today’s market | Buyers & sellers |
| Appraised Value | Third-party valuation for mortgage purposes | Lenders |
| Assessed Value | Value assigned for property taxes | Local governments |
| Market Value | Broad term for current value based on comps | Agents, buyers, sellers |
Pro tip: These values don’t always match — and fair market value is often higher than the assessed value used for taxes.
Pricing a home for sale is just one of the many things your Realtor will help you with. So, is working with a Realtor worth it? Read this blog to find out why working with a Realtor is worth every penny.
How to Determine Fair Market Value of a Home
Wondering how to get the fair market value of your home? Here are a few solid options:
1. Ask a Local Realtor
This is the gold standard. A seasoned real estate agent can run a Comparative Market Analysis (CMA) based on recent, nearby sales. Bonus: it’s usually free.
2. Hire a Licensed Appraiser
Appraisers give a formal, unbiased value (often required by lenders). If you’re not selling just yet, it can still give you a data-backed benchmark.
3. Check Online Estimators (With Caution)
Sites like Zillow or Redfin can give rough ideas, but they often miss key context — like renovations, lot specifics, or local market trends. Most realtors will tell you not to rely on these sites, but they can be a starting point, just not gospel.
Why settle for anything less than the best when selling your home? Read about how to find the best real estate agent to sell your home right here.
What Affects the Fair Market Value?
- Comparable recent sales (aka “comps”)
- Inventory (more homes on the market = more competition)
- Time of year (seasonality plays a role)
- Home upgrades (kitchen reno? Big plus. Unpermitted work? Big red flag.)
- Curb appeal (yes, it really matters)
Why Fair Market Value Matters
Setting the right price upfront:
- Attracts serious buyers
- Reduces days on market
- Helps avoid appraisal issues later
- Increases your odds of a clean, full-price offer
Price too high? You sit.
Price too low? You lose money.
Price at fair market value? You sell.
Still have questions about selling your home? Here are a few more posts you might find helpful:
- Selling a House During Divorce: A Complete Guide
- Should Seniors Sell Their Homes and Rent?
- How to Sell a Home You Inherited
The Bottom Line
If you’re wondering how to determine fair market value of your home, the smartest move is to talk to a local expert. A knowledgeable agent will dig deeper than any algorithm — and price your home to sell right.
Thinking of selling? At Jenn Smira & Co, we’re always here when you need to figure out exactly what your home is worth so you can take that next step with clarity and confidence.
Get in touch today by filling out the form on this page, calling us at 202.280.2060, or emailing co*****@*******ra.com.
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