| Webster's Online Dictionary |
| Expressions | Definition | ||
| Fair market value | Fair Market Value originally is the value at the market at the fair. It is a term in both law and accounting to describe an appraisal based on an estimate of what a buyer would pay a seller for any piece of property, assuming neither the seller nor the buyer is under any compulsion to complete such a transaction, and that the buyer has no special interest in the property. It is a common way of evaluating the value of property when assessing damages to be awarded for the loss of or damage to the property, generally in a claim under tort or a contract of insurance. (references) | ||
Source: compiled by the editor from various references; see credits. | Top | ||
| Expressions | Domain | Definition | |
| Fair market value | Agriculture | The amount in cash, or on terms reasonably equivalent to cash, for which in all probability something might be sold by a knowledgeable owner to a knowledgeable purchaser. Several federal statutes state that the federal government should receive fair market value when exchanging or selling federal lands and resources. (FMV). (references) | |
| Fair market value | Banking | 1: The price a willing buyer will pay and a willing seller will accept for real or personal property. (references) | |
| 2: The price at which a willing seller will sell and a willing buyer will buy, in an arm's length transaction, when neither is under compulsion to sell or buy and both have reasonable knowledge of relevant facts. (references) | |||
| Fair market value | Business | What a qualified buyer will pay for goods, services, or property. (references) | |
| Fair market value | Energy | The value of a vehicle as stated by the National Automotive Dealers Association (NADA) or other sale publication. For vehicles under the 3-year replacement cycle, Fair Market Value is the average loan indicated in the appropriate NADA publication. (references) | |
| Fair market value | Finance | The price at which property would be transferred from a willing seller to a willing buyer, each of whom has a reasonable knowledge of all pertinent facts concerning the property in question and similar properties on the market, and neither is under any compulsion to buy or sell. Most accountants consider fair market value to be slang for market value. (references) | |
| Fair market value (market value) | Business | The highest price estimated in terms of money which the property will bring if exposed sale for in the open market by a seller who is willing but not obligated to sell, allowing a reasonable time to find a buyer who is willing but not obligated to buy, both parties having a knowledge of all the uses to which it is adapted and for which it is capable of being used. (references) | |
| Fair market value for leasing purposes (FMVLP) | Business | The fair market value of a whole or part of a property to be leased by the Government, whether general purpose property or special purpose property or a combination of thereof. This heading applies to a property specially constructed or remodeled for lease to the Government. (references) | |
Source: compiled by the editor from various references; see credits. | Top | ||
