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

Jody Allen, as her brother’s executor and trustee, has a legal obligation to sell the team for as much money as possible, which requires careful timing and good business judgment when appraising the asset’s fair market value. —Naomi Cahn, The Conversation, 27 Feb. 2026

The bill also initially increased the penalty to a Level 6 felony if the fair market value of the reward is at least $750. —Alexandra Kukulka, Chicago Tribune, 25 Feb. 2026

The appraisal set the fair market value of the 2-acre site, which was valued as a street easement, at $80,600. —Jennifer Van Grove, San Diego Union-Tribune, 25 Feb. 2026

While there was no dispute that sales must be fairly conducted, justices across the ideological spectrum resisted the idea that compensation should be based on the home’s fair market value. —Maureen Groppe, USA Today, 25 Feb. 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