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
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The producers get compensation at 75% of the average fair market value of affected livestock. Sacbee.com, 14 July 2025 In addition, calculating the proportional deduction requires disclosing the fair market value of the decedent’s worldwide assets on IRS Form 706-NA. Virginia La Torre Jeker, Forbes.com, 30 June 2025 The Cook County assessor’s office assigns the property a fair market value of $9.8 million. Bob Goldsborough, Chicago Tribune, 17 June 2025 The catch is anything over $600 must be reported to a Deloitte-run clearinghouse that audits them for fair market value, hoping to regulate the wild spending of the current system that predictably morphed into unrestricted free agency without a salary cap. Mark Zeigler, San Diego Union-Tribune, 14 June 2025 See All Example Sentences for fair market value

Word History

First Known Use

1891, in the meaning defined above

Time Traveler
The first known use of fair market value was in 1891

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Cite this Entry

“Fair market value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/fair%20market%20value. Accessed 22 Jul. 2025.

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

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