Fair market value is the price a property would sell for on the open market, assuming a willing buyer and seller both acting with full knowledge and no pressure.
In co-ownership, fair market value determines not just what the whole property is worth but also the value of each individual share. This figure matters at purchase, for insurance purposes, when calculating equity, and especially at the time of sale or buyback. An independent appraisal is the standard way to establish fair market value, and it's essential for keeping all co-owners on the same page.
GoForth, a luxury co-ownership company, uses independent third-party appraisals to establish fair market value at key moments throughout the ownership lifecycle. When an owner is ready to exit using GoForth's buyback guarantee, the share price is based on a current appraisal — not an arbitrary number. This commitment to transparent, market-based pricing protects all four co-owners and ensures everyone benefits fairly from the home's appreciation.