fair market value

noun

: a price at which buyers and sellers with a reasonable knowledge of pertinent facts and not acting under any compulsion are willing to do business

Examples of fair market value in a Sentence

Recent Examples on the Web

But 40 Wall’s lease contains a clause that says the rent will periodically reset to reflect the land’s fair market value, as defined by a formula that is very favorable to the ground owners, given the extraordinary increase in Manhattan land prices over the past few decades. —Paula Aceves, Curbed, 31 Oct. 2024

This can include debris removal and pruning or replanting vegetation to restore the property’s pre-disaster fair market value. —Raul Elizalde, Forbes, 21 Oct. 2024

What: Facilities referendum How much: $89.1 million Tax impact: An additional 24 cents per $1,000 of fair market value. —Alec Johnson, Journal Sentinel, 15 Oct. 2024

Not uncommon for projects in the south suburbs, the Class 8 designation would reduce the property tax assessment level for the property to 10% of fair market value, or the same assessment level for residential properties. —Mike Nolan, Chicago Tribune, 10 Oct. 2024

Word History

First Known Use

1891, in the meaning defined above

Legal Definition

fair market value

noun

: a price at which buyers and sellers both having reasonable knowledge of the property and being under no compulsion are willing to do business