Fair Market Value
FAIR MARKET VALUE
The amount for which real property orpersonal propertywould be sold in a voluntary transaction between a buyer and seller, neither of whom is under any obligation to buy or sell.
The customary test of fair market value in real estate transactions is the price that a buyer is willing, but is not under any duty, to pay for a particular property to an owner who is willing, but not obligated, to sell.
Various factors can have an effect on the fair market value of real estate, including the uses to which the property has been adapted and the demand for similar property.
Fair market value can also be referred to as fair cash value or fair value.