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 The bill also allows city entities and nonprofit tenants residing at properties along the 710 corridor, currently owned by Caltrans, to purchase their properties at fair market value or value in use, whichever is the lesser of the two. Sara Cardine, La Cañada Valley Sun, "Portantino bill killing plans to complete 710 signed by Newsom," 16 Oct. 2019 The public clamor for more action is so intense that the mayors of Burr Ridge, Darien, Hinsdale and Willowbrook are mulling plans to seize the Sterigenics buildings through eminent domain and pay the company fair market value for the properties. Clifford Ward, chicagotribune.com, "DuPage County judge rules that Sterigenics plant can reopen in Willowbrook," 6 Sep. 2019 Even if Thornton signs a cheap $1-2 million, one-year deal, and Patrick Marleau comes back to San Jose under a similar contract, that may not be enough room under the $81.5 million salary cap to pay Pavelski fair market value. Curtis Pashelka, The Mercury News, "If Joe Pavelski signs elsewhere, Sharks will miss more than just goals, assists," 28 June 2019 Christi Jacobson, the district’s director of finance, said if one of the referendum options was approved, the possible new taxes would add about $500 to $540 to the annual tax bill for the owner of a house with a fair market value of $500,000. Graydon Megan, chicagotribune.com, "Elmhurst Park Board considers March referendum for up to $105 million in projects," 11 Sep. 2019 Cities previously could use eminent domain to take ownership of assets at fair market value. Washington Post, "PG&E plan offers billions to victims, others after wildfires," 9 Sep. 2019 When an employee leaves Hell’s Kitchen, the company will pay them the fair market value for their earned shares. Jess Fleming, Twin Cities, "Minneapolis restaurant Hell’s Kitchen is selling — to its employees," 15 Sep. 2019 Further Reading Nightmarish transition from Verizon to Frontier has no end in sight Goodwill is the fair market value of a company, excluding its assets. Jon Brodkin, Ars Technica, "ISP Frontier is failing so badly it won’t take questions from investors," 7 Aug. 2019 The Internal Revenue Service can impose penalties if top officials and their families receive economic benefits that exceed fair market value. oregonlive.com, "NRA money flowed to board members amid allegedly lavish spending by top officials and vendors," 10 June 2019

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.

See More

First Known Use of fair market value

1891, in the meaning defined above

Keep scrolling for more

Learn More about fair market value

Time Traveler for fair market value

Time Traveler

The first known use of fair market value was in 1891

See more words from the same year

Statistics for fair market value

Last Updated

14 Nov 2019

Cite this Entry

“Fair market value.” The Merriam-Webster.com Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/dictionary/fair%20value. Accessed 22 November 2019.

Keep scrolling for more

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

Comments on fair market value

What made you want to look up fair market value? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

not agreeing with established beliefs

Get Word of the Day daily email!

Test Your Vocabulary

Name that Food Quiz

Spell It

Can you spell these 10 commonly misspelled words?

TAKE THE QUIZ
Bee Cubed

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!