Fair Market Value Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Fair Market Value, written in plain English, along with examples of how it is used.
What is Fair Market Value?
n. Potential sale price for a piece of property if it were sold on the open market. This differs from replacement value which is the cost of duplicating the property. Comparable sales of similar property in the area are used by real estate appraises to determine the market value. Differences in quality and size of the property are added or deducted from comparable sales prices.