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

Investors who hold the QOF interest for at least 10 years may elect to step up its basis to fair market value, excluding the investment’s appreciation from tax. — Fernando Jimenez, Forbes.com, 28 Sep. 2026

The Fox Lake Fire Protection District has a proposal on the ballot to increase the tax rate for firefighters’ pensions, which would amount to $20 a year for a single-family home having a fair market value of $100,000. — Charles Selle, Chicago Tribune, 23 Sep. 2026

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

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