Fair Market Value Definition
Fair market value is the price (or value) that is agreed upon by both a buyer and seller for an asset or property; when both the buyer and seller are under no pressure to complete the transaction.
Fair market value is used in various industries and situations including real estate property taxes, insurance, tax accounting, etc. Considerations that can affect the fair market price include condition, demand, original purchase price, as well as other factors. Online resources offer instructions for determining the fair market value, or you can enlist the services of a professional appraiser.