Fair market value

Fair Market Value: The fair market value is the price that a willing buyer would pay to a willing seller when neither is under any pressure to buy or sell. In other words, it's the price that would be agreed upon in an arm's length transaction.

  • Definition: Fair market value represents the mutually accepted price in an arm's length transaction.
  • Determination: Appraisers commonly utilize comparable sales data to ascertain fair market value accurately.
  • Adjustments: Adjustments are necessary to account for any disparities in prices among different properties being evaluated.

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