How to Receive Fair Market Value
The fair market value of an item is determined by reference to how much like items have sold for in the very recent past; that is, the current market price of an item. With mass-market goods, such as cars and computers where there is a large secondary market, the approximate fair market value can be determined easily by reference to recent sales of like items. And there are many sources of information available today about prices of goods in secondary markets, but it is more difficult to determine fair market value for other more unique and less frequently sold items, such as real estate or jewelry.
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Instructions
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Research the car you are trying to sell. Careful and thorough research is the only way to truly determine fair market value. Year, make, model and mileage are the most important factors in determining the value of a car, but condition is also important and is the one somewhat subjective criteria. A great deal of research can be done using the Internet and other basic resources, such as the Kelley Blue Book, and you can at the very least determine a reasonable range of fair market value for your car.
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Hire an automobile appraiser to determine the fair market value if you have a classic car, a collectible automobile or even a low mileage luxury car to certify its condition. An appraisal could cost $100 or more, but classic cars often have unique features associated with models, year of production, etc. that can add significantly to the vehicle's value.
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Consider that fair market value is not the same as retail value or even wholesale value, but rather is what you should expect to sell the item for at this point in time. Also keep in mind that factors, such as geographical location and relative scarcity/availability of that model locally, play a big role in determining fair market value for automobiles. For instance, a convertible car in Maine will not fetch the same value as one in California. However, a Shelby Mustang, due to its low production numbers, will be sought-after anywhere.
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Tips & Warnings
It is a good idea to get at least two appraisals of an unusual or unique item to confirm the fair market value.
References
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