What does fair market value mean
How do you explain fair market value?
The fair market value is the price an asset would sell for on the open market when certain conditions are met. The conditions are: the parties involved are aware of all the facts, are acting in their own interest, are free of any pressure to buy or sell, and have ample time to make the decision.
Is fair market value good?
In a real estate transaction or car sale with a willing buyer and willing seller, the fair market value is a price that both sides agree is reasonable. In real estate, property taxes can also be based on fair market value.
What is the difference between actual value and fair market value?
The fair value model is often the model of the fundamental valuation of an asset or a company etc. The actual value is the fair value and what the asset should be worth. Market value is the value decided by the market and is not derived fundamentally.
How do you find the fair market value of a stock?
Determining the fair market value is relatively straightforward for stock that is traded on a public exchange. In such cases, the fair market value is calculated by taking the average of the highest and lowest selling prices of the day.
How do I find the fair market value of my home?
Here are four ways to find it:
- Go to a site like Zillow or Trulia. One quick way to find the fair market value of a home is to check online real estate sites. …
- Contact a local realtor to run a comparable market analysis (CMA). …
- Get an appraisal. …
- Check the taxes.