Fair Market Value

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Fair Market Value

The amount for which real property or Personal Property would be sold in a voluntary transaction between a buyer and seller, neither of whom is under any obligation to buy or sell.

The customary test of fair market value in real estate transactions is the price that a buyer is willing, but is not under any duty, to pay for a particular property to an owner who is willing, but not obligated, to sell.

Various factors can have an effect on the fair market value of real estate, including the uses to which the property has been adapted and the demand for similar property.

Fair market value can also be referred to as fair cash value or fair value.

fair market value

n. the amount for which property would sell on the open market if put up for sale. This is distinguished from "replacement value," which is the cost of duplicating the property. Real estate appraisers will use "comparable" sales of similar property in the area to determine market value, adding or deducting amounts based on differences in quality and size of the property. (See: market value, appraiser)

References in periodicals archive ?
ii) the FBR rate as percentage of fair market value was higher when compared with a similar comparable location.
In a deficiency action, the court can consider the comparable sales approach, cost method, income method and other relevant evidence to determine the fair market value of the property.
Two separate definitions can generally apply to the standard of fair market value.
He said, I relied upon the literal definition of Fair Market Value as established by the Internal Revenue Service in Revenue Ruling 59-60: .
The new alternative method establishes fair market value "through an approximation that is based on the interpolated terminal reserve at the date of the conversion, plus the proportionate part of the gross premium paid before the date of conversion which covers the period extending beyond that date," officials write.
Physicians should keep in mind that fair market value is a range, not a specific number, she said.
One way to get a good fair market value in a lease is to have the property appraised.
If the spread between the purchase price and the fair market value of the property at the time of receipt is fairly small, a Sec.
Tenants often get confused between fair market value and "commercial reasonableness," Ms.
FERC agrees that fair market value is the most reasonable basis for assessing these charges.
McCrory, AU Legal Director Ayesha Khan and AU attorney Allison Pierce asserted, "The courts have uniformly held that the transfer of public land to a religious organization at less than fair market value impermissibly advances religion.