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

By selling the easements on their land at a discount, the clients collect cash and can claim a charitable deduction for the difference between the sale price and the fair market value. — Hayley Cuccinello, CNBC, 23 July 2026

After July 2034, based on the performance of the NFL assets, Disney may have the right to reacquire the NFL’s interest in ESPN in exchange for a 10-year security at 70% of the then-fair market value of the NFL’s interest in ESPN. — Todd Spangler, Variety, 21 July 2026

This time, the Court ruled that when a tax sale is fairly conducted, the Constitution does not require the government to compensate the former owner based on the home’s fair market value. — Kelly Phillips Erb, Forbes.com, 27 June 2026

Lower courts ruled against the Pungs, and the justices likewise resisted the idea that compensation should be based on the home’s fair market value. — Maureen Groppe, USA Today, 23 June 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