Fair Market Value
- The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.
honest value, just, reasonable cost, respectable worth, proper
Related Terms and Acronyms
- Actual Cash Value (ACV) — Acronym,
- The replacement cost of an insured asset with depreciation accounted for.
- The amount of money that a broker or dealer has invested in the purchase and repair of a used vehicle.
- Appraised Fair Market Value (AFMV) — Acronym,
- Appraised Value — Definition,
- An educated opinion of how much a property is worth.
- Blue Book — Definition,
- Formally, it refers to the Kelley Blue Book, an industry guide dealers use to estimate wholesale and retail vehicle pricing.
- Book Value — Definition,
- The value of a property, item or company as a capital asset based on its cost plus any additions, subtracting depreciation.
- A valuation method determined by taking the original cost of an asset and subtracting any depreciation, impairment or amortization costs.
- Current Market Value (CMV) — Acronym,
- The estimated price determined by the recent sale of similar properties.
- Extended Replacement Cost — Definition,
- A replacement cost for an asset that exceeds that of the actual cash value of the asset.
- Fair Market Value Appraisal (FMVA) — Acronym,
- Full Market Value — Definition,
- In reference to property taxes, usually refers to the tax rate applied to 100 percent of the property's value. Also full cash value.
- Intangible Asset — Definition,
- Non-physical resources or rights to other assets. Patents, goodwill, permits and computer programs are examples of intangible assets.
- Intangible Property — Definition,
- Property that does not have value itself, but represents something else. Stocks, bonds and franchises are examples of intangible property. Business furniture and equipment are examples of tangible personal property.
- Low Ball Offer — Definition,
- A way-below-market bid a buyer makes on a property or item.
- Median Price — Definition,
- In a given area, the amount paid for a house in which half of the houses in that area sell for less and half sell for more.
- Monetary Value — Definition,
- A property's monetary value is its worth if sold at this moment in time.
- Principle of Conformity — Definition,
- The notion that a house will fetch a fair price if it is situated among houses of similar size, style and condition.
- Principle of Progression — Definition,
- The notion that a smaller house's value will be enhanced if it is near larger, fancier houses.
- Principle of Regression — Definition,
- The notion that the value of a larger or fancier house will be reduced if it is near smaller, lower-priced houses.
- Property Value — Definition,
- The worth of a piece of real estate, based on the price a buyer and seller would negotiate.
- Purchase Price — Definition,
- The total selling price of the home, including the cash down payment and the principal on the loan.
- Replacement Cost — Definition,
- The amount one would have to pay to rebuild and refurnish with materials and items of similar value. The cost of replacing an asset with one of equal value without taking depreciation into account.
- Seller's Market — Definition,
- Due to either low supply or high demand, the seller can expect to sell quickly with a high sale price.
- Upside-down — Definition,
- A position that consumers find themselves in when the outstanding balance of a loan is higher than the current fair market value of the property purchased with the loan. See also "Depreciation."
- Valuation — Definition,
- The estimation of a property's price value through an appraisal.
- The process of finding the worth of an asset or business.
- Valuation Clause — Definition,
- A clause in an insurance contract that states how much an insurer is willing to pay for an asset after an insured event.