Which factors are used to determine the "fair market value" of a property?

The determination of "fair market value" for a property primarily relies on recent sales of comparable properties, also known as "comps." This method is rooted in real estate market analysis, where properties that are similar in type, size, and location are analyzed based on their most recent sale prices. This comparison provides a solid, empirical basis for estimating the fair market value, as it reflects what buyers in the current market are willing to pay for similar properties.

Unlike the other options, which may represent isolated data points or subjective opinions, recent sales provide factual, market-driven insight into value. A buyer's offer price can fluctuate based on individual motivations and circumstances but does not necessarily reflect the broader market conditions. Focusing solely on the location of the property overlooks the relevance of comparable sales in determining value. Additionally, while historical prices may give context to a property’s value over time, they do not account for current market conditions that directly impact fair market value today.

Using recent sales of comparable properties is thus a vital component in accurately assessing a property's fair market value within the current real estate landscape.