What is Fair Market Value?

A definition of Fair Market Value

“Fair market value is the price that a property or asset would sell for on the open market under normal conditions, with both buyer and seller acting without pressure, fully informed, and willing to transact.”

Fair Market Value in Business Glossary - What is a Fair Market Value?

Business Glossary > What is Fair Market Value?


Examples of Fair Market Value in a Sentence:

The fair market value of the company’s stock increased over the past year.

An independent appraiser assessed the fair market value of the property.

Understanding fair market value is crucial for accurate property tax assessments.

Why is Fair Market Value Important in Business?

Fair market value is essential for determining the appropriate price in transactions, tax assessments, and legal matters. It ensures that both parties are treated fairly, minimizing disputes and discrepancies in valuations.

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Associated Terms

Here are some associated business terms and synonyms for “Fair Market Value”:

  • Appraised Value
  • Market Value
  • True Value

Real Estate Fair Market Value

In the real estate industry, companies like Zillow rely on fair market value assessments to provide accurate estimates for buyers and sellers. These assessments help ensure homes are priced fairly based on the current market conditions.

Final Notes on Fair Market Value

When dealing with fair market value, consider factors like current demand, market trends, and the condition of the asset. These elements significantly influence valuation accuracy, aiding in transparent and equitable transactions.


This has been a definition of Fair Market Value meaning.

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