How does michigan determine the fair market value of property?
Each state must have a method to determine “fair market value” of real property. Michigan law and Constitution regulates this determination,Market (Cash) ValueAs the city of Livonia Michigan explains, the market value of property is “simply the probable price that it would sell for in an arm’s length transaction between a willing buyer and a willing seller.” In Michigan, this market value is called “True Cash Value” . Incidentally, this value changes every year.AssessorThe assessor is required to determine the market value, which becomes known as “fair market value.” Quite simply, this is defined as the price that an interested–but not desparate–buyer would be willing to pay, and an interested–but not desparate–seller would accept for the property. Obviously, factors such as the economy can alter these figures.Fair Market Value — 50%The assessed value determines fair market value. The assessor is required by Michigan law and Constitution to assess propertys “at 50% of true cash va
