Understanding Fair Market Value
Learn what Fair Market Value is and how it impacts your property taxes.
Posted by
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Fair Market Value (FMV) is the estimated price at which a property would sell in a competitive and open market. It is a crucial factor in determining property taxes.
FMV is determined by various factors including the property's condition, location, and the current market trends.
Appraisers use comparable sales, income potential, and the cost to replace the property to determine its FMV. This value is then used by tax assessors to calculate property taxes.
- FMV affects the amount of property taxes you owe.
- Understanding FMV can help you appeal your property tax assessment if you believe it is too high.
Knowing your property's Fair Market Value is essential for managing your tax obligations and ensuring you are not overpaying.