Fair Market Value

Learn about the definition for this legal term.

What is Fair Market Value?

An estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market. An estimate of fair market value may be founded either on precedent or extrapolation.

Further Reading

For more detailed information, see our related Real Property terms:

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