fair market value

noun

Definition of fair market value 

: 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

Project Neighbors had two lots for sale in the 300 block of Union Street, Peters said, so Respite House officials were able to purchase them at below fair market value. Amy Lavalley, Post-Tribune, "New halfway house planned for Valparaiso," 29 June 2018 Eligible homeowners may sell their home to a local government at a pre-storm or post-storm fair market value and move out of harm's way by relocating outside of a floodplain to a lower-risk area. Staff Report, Houston Chronicle, "McCaul says efforts need to be expedited to help storm survivors," 3 July 2018 Beckham’s group is seeking a lease of the land for 39 years with two 30-year renewal options at an annual base rent equal to the greater of $3,577,365, or fair market value as determined by two state certified appraisers. Craig Davis, Sun-Sentinel.com, "David Beckham, Jorge Mas encounter opposition in latest bid for Miami MLS stadium," 13 July 2018 FreshPoint would pay about $125,000 an acre, 10-percent more than fair market value and would pay $20,000 a year in property taxes, Freimuth said. Kenneth R. Gosselin, courant.com, "FreshPoint Wins Endorsement To Develop Land At Regional Market In Hartford's South Meadows," 28 June 2018 The denial led the city council to pass legislation in September allowing it to sell parkland to a nonprofit for less than fair market value, Strickland said. Doug Criss, CNN, "Memphis took down two Confederate statues. State lawmakers are punishing the city for it," 18 Apr. 2018 The Cook County assessor’s office gives the house a fair market value of more than $1.085 million. Bob Goldsborough, chicagotribune.com, "Finkl steel heir gifts $1 million-plus Evanston mansion to Illinois Institute of Technology," 9 Jan. 2018 One of those existing powers is eminent domain, which means Atrium can force property owners to sell at a fair market value to make room for hospital projects. Deon Roberts, charlotteobserver, "Atrium wants to expand across NC. What that could mean for health care in Charlotte.," 11 June 2018 Section 15 of the Illinois Condominium Property Act requires investors to pay fair market value, but some offer premiums above that. Pamela Dittmer Mckuen, chicagotribune.com, "When is selling entire condo building the best move?," 30 May 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'fair market value.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of fair market value

1891, in the meaning defined above

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The first known use of fair market value was in 1891

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More Definitions for fair market value

fair market value

noun

Financial Definition of fair market value

What It Is

Fair market value is the price at which a willing seller sells a good or service to a willing buyer.

How It Works

Let's assume John Doe wants to sell his house. He lists it for $750,000. Jane Dale wants to buy a house. She sees John's house for sale and offers him $675,000. The two negotiate the price and agree on $700,000. Because it is the price John and Jane agree to, the fair market value of the house is $700,000.

Why It Matters

People often feel that houses, art, stocks, bonds and other items are "worth" a certain amount on the market, but the only true measure of worth -- the fair market value -- is the price at which someone is willing to sell and someone is willing to buy.

Source: Investing Answers

fair market value

noun

Legal Definition of fair market value 

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

More from Merriam-Webster on fair market value

Britannica.com: Encyclopedia article about fair market value

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