The answer to “what is my property worth” depends on how we look at the situation. If we’re talking about fair market value, the traditional definition is stated in the IRS regulations. There, “fair market value” is defined as “the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.” Treasury Regulation 26 CFR 20.2031-1.
There are, however, other ways to value property. For example, the default value under Georgia’s Medicaid rules is the tax assessed fair market value, which may be higher or lower than the amount someone would pay for the property.
Another way to value property is to consider substitution value. What would it cost to replace your property.
Yet another way to value it is by considering property’s rental value.
During a “hot” market, sellers have an advantage because demand exceeds supply. There aren’t enough houses on the market to satisfy all buyers.
During a “cold” market, buyers have an advantage because supply exceeds demand. There are too many properties to choose from.
Another factor is whether potential buyers can get financing. If no one can afford to buy your property, then you can’t sell it for fair market value.