Fair Market Value?

There are certain terms and catch phrases in the English language that can seriously drive me mad. Take for instance the word “whatever” if used properly the word “whatever” can be a good word such as in a sentence like “whatever happened to old Bob” or something silly like that, but when used by a sarcastic teenager as in the singular “whatever” with a disdain full look at their parents or siblings I suddenly want to break some or all of the child abuse laws. Some words can have that effect.


The latest set of words that have me wanting to slam my head into a wall are “fair market value.” Three times I have heard those words used when it has involved me and my family over the last couple of years and I am just a bit on the frustrated side.


Now I understand the term. It simply is in reference to the value of, in this case homes, compared to others in your area and their relative value. I understand the words. But I don't like them and I am never going to understand how a piece of property can sell for one price one day and then the next it cost three or four times as much or, in the opposite extreme, much less.


Four years ago I first heard the term used in reference to the house that we had owned; the price that you are asking for your house is above the “ fair market value.” A few years earlier our house had been worth what we paid for it but now not only was it not worth what we paid it wasn't even close to what we owed. Many of you who have read my blog posts in the past know how that all turned out, but for you who don't ,lets just say it wasn't good ,and a large, federally bailed out bank, made out like a bandit.


The last two times I have had this term directed at me has been in the last year or so. In both instances it has been used as an excuse to raise the rent, the most recent being about 3 weeks ago.


Who exactly is it that determines this? Why is it that a small 3 bedroom duplex can be rented out for almost 20 times more than what my grandparents mortgage was for their house? How can it be that the same type of housing out west or in the south would cost less than half of what I am paying now?This is insane and it puts me and my family in a tough spot. Can we pay for it once it goes up? Technically yes, but the problem is is that costs keeps going up but my paycheck isn't keeping up.


Considering the high price of living here in New England and the ungodly high property taxes making a mortgage almost impossible, we may be forced out of this area of the country, where all our friends and family are, simply because we have the misfortune of having a limited income.


So my conclusion is that “fair market value” is not terribly fair and the value is simply subject to those who want to dig more money out of our wallets and “fair market value” is only fair if you can pay for it. Just my Simple Minded opinion.