Are you looking to sell your house fast in Pittsburgh while getting the top dollar for it? Before you Google “How to sell my house fast in Pittsburgh,” there’s something you need to do. You need to figure out your FMV. This article will explain the FMV, why it matters, and how to calculate it for your Pittsburgh home.
What Is a Fair Market Value?
The Fair Market Value (FMV) is the predetermined price your house will sell for in an open market. Before you accept an offer from real estate agents or cash home buyers in Pittsburgh, you need to know your property’s worth.
It isn’t the value you or the buyer think it is, nor is it the tax value or the appraised price. Instead, it is the fair selling price of your home, based on several factors like market conditions. The next section will show you how to calculate this important number.
3 Steps to Calculate the FMV of a Property in Pittsburgh
1. Comparative Market Analysis
A Comparative Market Analysis, or CMA, estimates the homes sold in your neighborhood within the last six to twelve months. Real estate professionals use the CMA to fix the fair market prices of the properties in their portfolios. The CMA report usually contains the following:
- Addresses of similar properties in the neighborhood
- Properties with the same number of bedrooms and bathrooms as your home
- The listed and final selling prices of each of these properties
- The contract date, the closing date, and the year in which the property was constructed
- Square footage of each property
You can quickly create a CMA report for your Pittsburgh home using online CMA tools.
2. Market Condition
Market conditions play a crucial role in the selling price of your home. If it’s a seller’s market, then you’re in luck. There is a demand for homes among buyers, and you can set a higher price. However, buyers are more likely to negotiate the prices if the markets are down or it’s the wrong time of the year.
Besides the real estate conditions, the time of the year also decides the final selling prices. May and June are the considered the best times to sell your home, you’re likely to get higher prices.
3. Current Condition of Your Home
This third component may sound obvious but is still a huge factor. Homes that are maintained and renovated fetch higher prices. Additionally, you have the right updates in your home. For example, a dedicated home office space or state-of-the-art security systems will raise the FMV.