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 ?
ISLAMABAD -- The District Administration has issued notification to established 35 Fair price Shops and four-sasta bazaar in Islamabad.
A WELSH sheep farmer and a Ugandan coffee farmer compared notes on how to achieve a fair price for their produce on a visit to a Snowdonia farm in North Wales on Friday.
The GECF, whose members hold just under 70 percent of world s gas reserves, have been vying to establish a mechanism to set fair prices for natural gas to reflect parity with oil.
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.
Fairtrade is a partnership between producers in developing countries, and consumers that ensures they receive good working conditions and fair prices.
A WELL-ATTENDED coffee morning and a farm visit hosted by the FUW during the recent Fairtrade Fortnight (February 23-March 8) highlighted the union's joint campaign with the Wales Fair Trade Forum to promote fair prices for food producers in Wales and throughout the developing world.
Qatar's Energy Minister Mohammad bin Saleh al-Sada told a press conference that the members were looking for a fair price for natural gas but denied the forum was aimed at controlling prices.