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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Whether that means awarding your ex-spouse half the fair market value or a share of the sale proceeds, your business interests will likely be divided in a divorce. Julia Rodgers, Forbes.com, 24 July 2025 Premier League rules require related party transactions to be subject to a fair market value assessment but, given the presence of external investors in AVWFC, that should not be a problem. Chris Weatherspoon, New York Times, 1 July 2025 The producers get compensation at 75% of the average fair market value of affected livestock. Sacbee.com, 14 July 2025 In addition, calculating the proportional deduction requires disclosing the fair market value of the decedent’s worldwide assets on IRS Form 706-NA. Virginia La Torre Jeker, Forbes.com, 30 June 2025 See All Example Sentences for fair market value

Word History

First Known Use

1891, in the meaning defined above

Time Traveler
The first known use of fair market value was in 1891

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Cite this Entry

“Fair market value.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/fair%20market%20value. Accessed 5 Aug. 2025.

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

More from Merriam-Webster on fair market value

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