A seller always wants to sell at the highest price while a buyer always wants to buy at the lowest price. The price at which both buyer and seller would agree to do business determines the fair market value of a house. It take a little research and effort to arrive at the fair market value of a house, but knowing its fair market value allows a seller to sell his or her property at a reasonable price, and allows a buyer to avoid paying too much.

The Comparable Market Analysis or CMA

A comparative market analysis or CMA is an analysis provided by real estate professionals that surveys like properties in a given area in order to determine its fair market value. Real estate agents often give a CMA free of charge or for a nominal amount in order to give clients an idea of the fair market value of a certain property. A good CMA should take into account recent sales, pending sales, and current listings of similar properties within the immediate area.

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