What is the fair market value and who determines it?

Fair market value is a legal term defined by the courts and the state statute as the purchase price, which a property would bring on the open market, given prudent, knowledgeable, and willing buyers and sellers. Fair market value is the standard by which the fairness of all assessments is judged.

The buyer and seller of real estate determine the fair market value of the real estate. The Appraiser or Assessor analyzes real estate transactions that occur within the community and determine the factors that lead to the final sale prices.

Information developed through the analysis of these sales is used by Appraisers and Assessors to develop mathematical models that are utilized in estimating the market values of all properties in a community. Some of the typical factors that are used by an appraiser in estimating market values include location, condition, age, size, and quality of improvements.

Show All Answers

1. What is an assessment?
2. What is the fair market value and who determines it?
3. What guidelines must the Assessor follow?
4. How is the tax rate established?
5. How can I determine if my assessment is fair?
6. Whom do I contact if I have questions about my assessment?