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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Practically, however, a creditor should almost be willing to accept the fair market value of the interest (and often much less). Jay Adkisson, Forbes.com, 27 Apr. 2025 However, in almost one-third of states, including California and New York, annually spending more than 7% of an endowment’s fair market value, measured by a three-year average, is presumed to be imprudent. Ellen P. Aprill, The Conversation, 21 Apr. 2025 The Premier League analysed the hotel sales for fair market value, making a slight adjustment to Chelsea’s profit in terms of the PSR calculation. Oliver Kay, New York Times, 11 Apr. 2025 The settlement calls for a clearinghouse to make sure any NIL deal worth more than $600 is pegged at fair market value, which has appeared to be a challenging set of numbers to settle on. Janie McCauley, Chicago Tribune, 7 Apr. 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 13 May. 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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