Inheriting property from a family member can be exciting. You likely have fond memories of times spent at the property. You are also anticipating the same in the future.
You might be excited about this, and for good reason, an inherited property is often very valuable. You might be wondering, “How do you determine the fair market value of an inherited property?” Knowing its market value will ensure you aren’t surprised by future costs.
The answer depends on several factors, including its condition and the market in which it resides. Check out the rest of this article to find out how.
How Do You Determine the Fair Market Value of an Inherited Property?
Determining the fair market value of inherited property is important for tax purposes, estate planning, and potential future transactions. Here’s a general guide on how you can approach this process:
Appraisal
One of the most common methods is to hire a professional appraiser. Appraisers are trained to assess the value of properties based on various factors, including size, location, condition, and market trends. The official appraisal report can be used as a credible document to establish fair market value.
Real Estate Agents
Consult with real estate agents who are familiar with the local market. They can provide insights into current market trends and recent sales. This will help estimate the property’s value.
Additionally, when selling an inherited property, they can be invaluable in finding the right buyers. However, hiring a real estate agent isn’t the only method.
If you are looking to sell your inherited property, you can visit this website. They can evaluate your property and provide an easy buying process that ensures you get your best offer without all the hassle.
Tax Assessment
You can check with the local tax assessor’s office to find the assessed value of the property. However, this value might not necessarily represent a fair market value. Tax assessments are often done for tax purposes and might not reflect current market conditions accurately.
Online Valuation Tools
There are numerous online tools and websites that provide estimated property value based on recent sales and market data. While these tools can give you a rough idea, they might not be as accurate as a professional appraisal.
Current Comparable Sales
Research recent sales of similar properties in the area. This will provide you with a sense of what similar properties are selling for. This will help you estimate the fair market value of the inherited house.
Legal and Financial Professionals
Consult with legal and financial professionals, such as an attorney or an accountant, who specialize in estate matters. They can guide you through the valuation process. They will also help you understand any legal implications.
Consult With Real Estate Professionals
How do you determine the fair market value of an inherited property? The fair market value of inherited property is determined by conducting due diligence into the local market and researching recent sales. It’s recommended to seek the professional help of a real estate agent, appraiser, or attorney to price the property accurately.
Contact a trusted real estate professional today to receive a professional opinion on the fair market value of your property.
Did this article help you? If so, take a look at some of our other blog posts for more informative reads.
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