fair market value

USAGE SUMMARY

"fair market value" is a correct and usable term in written English.
It refers to what an asset or property is worth in an open market, and is determined by the current market conditions and the willingness of buyers and sellers. For example, when calculating property taxes, a property's fair market value is taken into consideration.

✓ Grammatically correct

News & Media

Academia

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

A We paid a fair market value.

The New York Times

"I need fair market value".

The New York Times

Fair market value figures into the formula.

The New York Times

We're only asking for fair market value".

The New York Times

Fair market value might consider the view, the court said.

The New York Times

How do you determine a "fair market value" for PR?

Massachusetts Institute of Technology

There is no such thing as a fair market value; it's a fair market value in the minds of each person.

The New York Times

In that case, "you've purchased a product at a fair market value," she wrote.

The New York Times

It is usually the fair market value of the property taken.

Encyclopedia Britannica

Just compensation is normally defined as the fair market value of the land or interest taken.

Encyclopedia Britannica

Good will represents the excess of an asset's purchase price over its fair market value.

The New York Times

Expert writing Tips

Best practice

Use "fair market value" when referring to an unbiased estimate of an asset's worth, particularly in situations involving sales, taxes, or legal disputes. Ensure the valuation is based on objective data and not subjective opinions.

Common error

Don't confuse the assessed value of a property (often used for tax purposes) with its "fair market value". Assessed value may not accurately reflect current market conditions, leading to miscalculations in financial planning or transactions.

Linguistic Context

The phrase "fair market value" functions primarily as a noun phrase, often used as an object or complement in a sentence. Ludwig examples show it is used to describe a specific price point agreed upon by buyers and sellers.

Expression frequency: Very common

Frequent in

News & Media

43%

Academia

13%

Wiki

12%

Less common in

Encyclopedias

6%

Science

15%

Formal & Business

6%

Ludwig's WRAP-UP

In summary, "fair market value" is a well-established and frequently used term that refers to the price at which an asset or property would change hands between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts. As Ludwig AI confirms, it is grammatically correct and widely used across various domains. With its usage spanning from News & Media to Academia, the phrase plays a crucial role in legal, financial, and real estate contexts. When using the term, it is important to distinguish it from other types of valuation like assessed value and consider factors that influence market dynamics to ensure an accurate and unbiased estimate.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

fair market values

The plural form of the original phrase, used when referring to multiple instances of fair market value.

fair marketplace value

Slightly emphasizes the marketplace aspect of determining value but carries a similar meaning.

accurate market value

Focuses on the precision and correctness of the valuation.

fair market valuation

Highlights the process of assessing fair market value rather than the value itself.

appropriate market value

Indicates that the value is suitable or fitting for a given context.

reasonable market value

Suggests that the value is justifiable and not excessive.

decent market value

Implies an acceptable or satisfactory value from a moral or ethical standpoint.

fair market price

Replaces "value" with "price", emphasizing the monetary aspect of the valuation.

fair worth

A more concise and direct way of expressing equivalent value.

sales value

Focuses specifically on the value derived from sales transactions.

FAQs

How is "fair market value" determined?

Fair market value is typically determined by assessing what a willing buyer would pay a willing seller in an open and competitive market. Appraisals, comparable sales data, and market analysis are often used to arrive at this figure.

What is the difference between "fair value" and "fair market value"?

"Fair value" is a broader accounting concept that can incorporate various valuation methods, including models. "Fair market value" specifically refers to the price in an open market transaction.

In what situations is knowing the "fair market value" important?

Knowing the "fair market value" is essential in real estate transactions, tax filings (especially for donations), estate planning, and legal disputes involving asset valuation. It ensures equitable transactions and accurate financial reporting.

Why might the appraised value differ from the "fair market value"?

The appraised value might differ due to the appraiser's methodology, the data available at the time of the appraisal, or market fluctuations. While the goal is to estimate "fair market value", appraisals are still estimates and can vary.