Fair market value - Definition

The estimated market value of an asset that is considered to be the best representation of its true value. An estimate of fair market value may be founded either on precedent or extrapolation. Fair market value differs from the Intrinsic Value that an individual may place on the same asset based on their own preferences and circumstances.

Fair market values are widely used across many areas. In the real estate industry the fair market value of a property can be judged by recent transactions in the area or rent or lease revenue capacity of a building. Fair market values are often used in the insurance industry, for example in assess the value of a vehicle at the time of accident based on its depreciated value.

Terms near "Fair market value"

Fair market value lease

Fairly valued

Fast Market

Federal Deposit Insurance Corporation (FDIC)

Federal Funds Rate (FFR)

Federal Open Market Committee (FOMC)

Federal Reserve Bank (Fed)

Federal Reserve Board

Fiat Currency

Fibonacci Numbers