GLOSSARY OF TERMS
The current economic crisis has brought these esoteric terms into mainstream conversation.
| TERMS | | Fair Market Value | | |
The Fair Market Value, is the price at which a property, commodity or service is agreeable to both a buyer and a seller in order to complete a business transaction. In the recent downturn in the housing market, the economic financial crisis and the credit crunch, the Fair Market Value of many homes has been greatly reduced. When banks are not lending, consumers can’t get home loans, and sellers are forced to reduce their asking prices. This has the effect of lowering Fair Market Value across most of the real estate market.
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