Fair Market Value
/ˌfɛər ˈmɑrkɪt ˈvælju/
Definitions
- (n.) The estimated price at which a property or asset would change hands between a willing buyer and seller, neither under compulsion and both having reasonable knowledge of relevant facts.
The appraiser determined the fair market value of the property before the sale.
Related terms
Commentary
Fair market value assumes an open and unrestricted market and is often used in tax law, estate planning, and contractual contexts to ensure impartial valuation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.