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 ?
The handout also sought cooperation of the traders to ensure the purchase and sale of the rawhides at fair prices, fixed by the ministry.
At Malouf Furniture and Interiors, we continue to strive to be the place to buy quality products at fair prices and with outstanding service.
The FUW and the Wales Fair Trade Forum formally teamed up to promote fair prices for food producers in Wales and throughout the developing world at the 2008 Royal Welsh Winter Fair - shortly after Wales was officially declared the first-ever Fair Trade Nation.
Fairtrade is when farmers in remote places receive fair prices for their products.
"Fair prices are determined by demand and production [supply].
Energy ministers of the Gas Exporting Countries Forum met on Sunday to prepare for the first ever summit of the 11-member group which will discuss fair prices and stronger coordination.
But in a thoughtful paper subtitled "Fair Price Pronouncements and the Market Price of Crude Oil", Bahattin Buyuksahin and other researchers working at the US Commodity Futures Trading Commission concluded pronouncements by Opec members including Saudi Arabia about fair prices have little influence on actual prices, and supply little or no news to market participants.
FAIR PRICES The National Farmers' Union is calling on retailers to pay farmers more for their poultry
The label, "Fair Trade Certified," which shows a black-and-white figure holding baskets in both hands, indicates that a product has met international fair trade standards for fair prices, fair labor conditions and environmental sustainability.
Fairtrade is a partnership between producers in developing countries, and consumers that ensures they receive good working conditions and fair prices.
Retailers are willing to pay fair prices for expansion space but the auctions we saw in the past are just that, a thing of the past.
Successful practitioners know their firm or company's bottom line and future depend on timely payment for services rendered at fair prices. Yet without effective policies and procedures to set fees, issue invoices and ensure payment, your organization is open to risks that threaten its growth and perhaps survival.