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determine fair market value

Why Historical Cost + Improvements ≠ Fair Market Value (Usually)

Seller Misconceptions “Sunk Cost”:  a retrospective (past) cost that has already been incurred and cannot be recovered. —Wikipedia What Sellers paid for their home ” and how much they subsequently put into it (for improvements, updates, etc.)  ” are important psychologically.* And, depending on how much the would-be Seller currently owes on their home, the sum of their cost + improvements...
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Why I’m Not a Fan of Price Opinions

“What’s Sauce for the Goose is Sauce for the Gander” I know of other agents — even some whom I consider excellent** — who use price opinions at least occasionally to inform the guidance they offer Sellers. Personally, I’m not a fan, for two reasons. Reason #1. Something like 90% of the time, price opinions...
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Determining Value for Sale vs. Refinancing

“What Will Buyers Pay?” vs. “What Value Does a Bank Need to Refinance the Current Mortgage?”  [Editor’s Note:  The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.] If you’re an appraiser or mortgage lender, stop reading now. No?  Good. One of...
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Why Historical Cost + Improvements ≠ Fair Market Value (Usually)

Seller Misconceptions “Sunk Cost”:  a retrospective (past) cost that has already been incurred and cannot be recovered. –Wikipedia What Sellers paid for their home — and how much they subsequently put into it (for improvements, updates, etc.)  — are important psychologically.* And, depending on how much the would-be Seller currently owes on their home, the sum of their cost + improvements...
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