fair market value

noun

: a price at which buyers and sellers with a reasonable knowledge of pertinent facts and not acting under any compulsion are willing to do business

Examples of fair market value in a Sentence

Recent Examples on the Web

Those deals, which are separate from 32 Equity, are shared through the cap via non-cash accounting, priced at fair market value on the date of vesting and amortized over 10 years. — Eben Novy-Williams, Sportico.com, 10 Sep. 2026

Illinois is now tied with New Jersey for the highest property taxes in the nation, and raising commercial fair market values by hundreds of millions of dollars in a single year has told companies this is not a stable place to do business. — Chicago Tribune, 8 Sep. 2026

The Clippers defend this as common practice, but Torre's findings suggest these deals were significantly above fair market value, designed to bypass the salary cap, which the CBA prohibits. — Bryan Toporek, Forbes.com, 18 Aug. 2026

Families that sell near fair market value can minimize capital gains tax, advisors say. — Sharon Epperson,stephanie Dhue, CNBC, 6 Aug. 2026

Word History

First Known Use

1891, in the meaning defined above

Rhymes for fair market value

• eigenvalue
• undervalue

Legal Definition

fair market value

noun

: a price at which buyers and sellers both having reasonable knowledge of the property and being under no compulsion are willing to do business