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

Owning Looney’s Bird rights, the Warriors can offer him fair market value in free agency this summer. Rusty Simmons, SFChronicle.com, "Warriors struggle at center with Kevon Looney sidelined in Game 3," 6 June 2019 The bank argues that even if the property had been taxable on Jan. 1, 2018, the fair market value of the property was no greater than $28,000, according to court documents. Karen Pilarski, Milwaukee Journal Sentinel, "North Shore Bank files an $8.7K civil lawsuit against the village of Elm Grove over real estate taxes," 4 June 2019 Compensation could include the fair market value of the property, among other things. Mengqi Sun, WSJ, "Companies in Cuba Face Legal Risks as U.S. Changes Stance on Seized Property," 2 May 2019 That translates to an average of $35,319 in value per woman, compared with $74,998 per man, according to a fair market value assessment by Carta. Yoree Koh, WSJ, "Pay Gap? For Women at Startups, the Equity Gap is Worse," 18 Sep. 2018 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

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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Last Updated

13 Jun 2019

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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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