fair market value
The value of property as determined by the market place (or objective purchasers) rather then as determined by a subjective individual. This is what an informed and unpressured buyer would pay to an informed unpressured seller in an arms length transaction (the price is based solely on the value of the property, as opposed to if you were selling the property to a family member and giving them a special deal).
Definition from Nolo’s Plain-English Law Dictionary
The amount for which property would sell on the open market. This is distinguished from "replacement value," which is the cost of duplicating the property.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:16 pm
