Housing.com-Fair Market Value: What does FMV mean and how to calculate it?
The fair market value (FMV) of a property or the fair value of land is the term that stands for the current value of a property if it was sold in the open market. The non-banking financial companies (NBFCs) and government organisations take into consideration the FMV when they assess the collateral assets or taxed properties.
Before agreeing to set the FMV price, the buyer and the seller should be aware about the present condition of the property and must agree for the transaction on their free will. Note that the Finance Act, 2017, shifted the base year for fixing cost inflation index (CII) from 1981 to 2001. This was done due to the lack of information for calculating FMV of properties as on April 1, 1981.In this guide we will discuss all details related to fair market value including its impact and calculation.
