What Is the Definition of Fair Market Value?
Fair market value is an important business term with both legal and financial meaning. It refers to the estimation of property values that may or may not be fungible and are not often sold or traded. Determination of price is a function of an agreed-upon value. As an economic term, it is used as a measure of value by accountants and appraisers to represent the value of non-fungible goods and services. As a legal term, fair market value refers to two willing parties, a buyer and seller, who enter into a transaction at an agreed upon price.
