There are several methods for determining the fair market value of a property:
Comparable sales: One way to determine the fair market value of a property is to look at comparable sales in the area. This involves finding properties that are similar to the one you are evaluating (e.g. same size, same location, same condition) and looking at the prices they have recently sold for. This can give you a sense of the current market value of the property.
Appraisal: Another way to determine the fair market value of a property is to have it appraised by a professional appraiser. An appraiser will visit the property, consider its condition, location, and other factors, and provide an opinion on its value.
Broker's price opinion (BPO): A broker's price opinion is an estimate of the value of a property provided by a real estate broker or agent. A BPO is typically based on the broker's knowledge of the local market and may be used to help determine the value of a property for financing or other purposes.
Cost approach: The cost approach involves estimating the value of a property based on the cost to rebuild it. This method is typically used for properties that are unique or have unusual features that make it difficult to compare to comparable sales.
Overall, there are several methods for determining the fair market value of a property, and the best method will depend on the specifics of the property and the market it is in. It's important to consider multiple methods and consult with professionals when evaluating the value of a property.