What factors does the appraiser consider in determining fair market value?
Each parcel of real property is different and, therefore, no single formula can be used to appraise all properties. Among the factors an appraiser typically considers in estimating fair market value are: The location of the property; The age and condition of improvements on the property; How the property has been used; Whether there are any lease agreements relating to the property; Whether there are any environmental issues, such as contaminated soil; Applicable current and potential future zoning and land use requirements; How the property compares with similar properties in the area that have been sold recently; How much it would cost to reproduce the buildings and other structures, less any depreciation; and How much rental income the property produces, or could produce if put to its highest and best use.
