Fair Market Value (FMV)

Fair Market Value (FMV) is the estimated price that a property or asset would sell for on the open market, where both the seller and the buyer are reasonable and well-informed. It reflects what someone is willing to pay, without any pressure to buy or sell. FMV considers market conditions, comparable sales, and the specific characteristics of the asset. Essentially, it helps determine a fair price that is in line with current market trends, ensuring that both parties have a fair opportunity in a transaction.