When I initially went to real estate school (all the way back in 1996) I was trained to believe that Fair Market Value was defined as:
The price a ready, willing and able buyer would pay for a property.
So that's what I lived by for awhile...then I learned when lenders get involved, sometimes appraisers get to determine value. My first experience with this was usually regarding unusual properties that were hard to comp out. The more unusual the property, the harder it was to comp out. That was frustrating.
In 2002 when I moved to Naples, the market was pulling out of the 9-11 slump that most markets experienced during that time so I was able to see first hand that crazy increase in traffic and appreciation that occurred from 2004-2006...let me tell you, it was the craziest market I've ever seen. During that time, buyers would pay UNBELIEVABLE and unproven prices for property and even when I'd tell them, there's no way I'm going to be able to show you the value of the property you're looking at today, they would hop in the car wanting to purchase anyway. A great deal of those purchases were made with cash...not many pesky appraisers to botch the deals. YAEE!
BUT
Now I'm finding a new definition to "Fair Market Value"
I'll just disclose in advance...Naples Florida is a really unusual market. Most of what you know or learned in another market can in many cases be thrown completely out the window down here...it's that different!
So the new definition I'm finding is this:
Fair Market Value is the price a ready willing and able seller will sell their property for. (did I just end my sentence in a preposition???)
How on earth can that statement above be correct? Some sellers down here just don't give a hoot about selling fast. Some don't care if they sell at all ESPECIALLY in some of our more luxurious locations. Seriously, would you sell for less if you could easily carry something with a view like this:
Most sellers say, no. We'll wait and if worse comes to worse, we'll come down and enjoy it next season....how can you argue with that?
Best Regards,
Your Naples Smart Girl
Serving my purpose through content rich informaton about Naples, Florida real estate!
Best Regards!
Shannon Lefevre, PA
Your Naples Smart Girl!
239-595-6223
www.ShannonLefevre.com
“The opinions expressed herein are those of the author and do not necessarily represent the views of John R. Wood Realtors.”
Shannon, it's the price that will draw blood from the sellers' veins!
Good point - LOL I think I would have a hard time giving that up as well:)
Shannon,at one point,it seemed like everything in Naples was a million bucks...sellers there were pretty spoiled.
Very nice post!
I learned the same definition you did and I agree, that definition has now changed! Great picture of the sunset over the pier. You are so correct with Naples being an unusual market!
Smart Girl, redefining the market one day at a time! Fun post! Gotta love it here.