fair market value

Definition

The price that an interested but not desperate buyer would be willing to pay and an interested but not desperate seller would be willing to accept on the open market assuming a reasonable period of time for an agreement to arise.

Use fair market value in a sentence

It is always wise to try and get as close to fair market value as you can any time you will be making a sale.

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After the hurricane hit the coast, some of the more unethical sellers began to sell lumber well above fair market value.

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My wife was somehow able to sell our old car to someone who didn't realize she was asking a price that was above fair market value.

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equalization rate Level 1 asset