Definition of Fair Market Value | Agreed Price for an Asset or Property

Accounting Definitions

Browse terms alphabetically

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Fair Market Value Definition

Short 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.

Expanded Definition
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.

Related Article
What Is Fair Market Value?
Market Price: Where Supply Meets Demand

Get Started
Try it free

Sign up today for a free, no-obligation 30-day trial.

Try It Free for 30 Days
Get Started
Take a demo

Kick the tires with a free self-guided demo.

Take a Self-Guided Demo