Wiktionary
n. (context finance English) The price at which the buyer and seller are willing to do business.
Wikipedia
Fair market value (FMV) is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market. An estimate of fair market value may be founded either on precedent or extrapolation. Fair market value differs from the intrinsic value that an individual may place on the same asset based on their own preferences and circumstances.
Since market transactions are often not observable for assets such as privately held businesses and most personal and real property, FMV must be estimated. An estimate of Fair Market Value is usually subjective due to the circumstances of place, time, the existence of comparable precedents, and the evaluation principles of each involved person. Opinions on value are always based upon subjective interpretation of available information at the time of assessment. This is in contrast to an imposed value, in which a legal authority (law, tax regulation, court, etc.) sets an absolute value upon a product or a service.
An eminent domain taking, in lieu of a property sale, would not be considered a fair market transaction since one of the parties (in this case, the seller) was under undue pressure to enter into the transaction. Other examples of sales that would not meet the test of fair market value include a liquidation sale, deed in lieu of foreclosure, distressed sale, and similar types of transactions.
Usage examples of "fair market value".
The Coordinating Body will assess the value of these settlementstheir land, buildings, infrastructure and relocation costsand establish their fair market value.
The PAA will have the option to purchase said settlements at their fair market value within two years of their evacuation, or they may put them up for auction, available only to current residents of the PAA areas.
I calculated the fair market value of the jewelry from the insurance appraisals.
You're just gonna get a buck to start with, but I can almost guarantee you that in the end you'll get fair market value.
He kept calling me `little lady' and `sweetheart,' all the while assuring me that the house was a real bargain and he'd done me a favour by selling it to me at less than fair market value.
He was saying he thought of buying her for himself at a fair market value, but decided he was too busy to use her as often as she ought to be used.
Even if someone could prove beyond a shadow of a doubt that a work in my collection had been stolen from their ancestor by the Germans, they would have to reimburse me at fair market value.
Stephen had listed the equipment at invoice price rather than at its much higher fair market value.
But my recollection is that he sold off all the options for fair market value.