Define: Fair Market Value

Fair market value refers to the price at which a property or asset would sell between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts and neither being under any compulsion to buy or sell.

Fair market value is typically determined by considering various factors such as the current market conditions, comparable sales of similar properties, the condition of the property, and any unique characteristics or features it may have.

Fair market value is important in various legal contexts, such as taxation, property transactions, estate planning, and divorce settlements. It helps ensure that parties receive a fair and equitable value for their assets.

While fair market value is based on objective factors, there can be some subjectivity involved in its determination. Different appraisers or experts may have slightly different opinions on the fair market value of a property, but they should still consider the same relevant factors.

Yes, fair market value can change over time due to fluctuations in the real estate market, economic conditions, or changes in the property itself. It is important to reassess fair market value periodically to ensure accuracy.

No, fair market value and assessed value are not the same. Assessed value is the value assigned to a property by a government entity for taxation purposes, while fair market value is the value determined by market forces.

Yes, fair market value can be disputed if there is a disagreement between parties involved in a transaction or legal matter. In such cases, it may be necessary to seek the opinion of an independent appraiser or expert to resolve the dispute.

Misrepresenting fair market value can have legal consequences, especially in cases of tax fraud or fraudulent property transactions. It is important to provide accurate and truthful information regarding fair market value to avoid legal issues.

Yes, fair market value can be used as a factor in determining alimony or child support payments, especially when it comes to dividing assets or determining the income of a party involved in the legal matter.

In some cases, fair market value can be negotiated between parties involved in a transaction or legal matter. However, it is important to ensure that the negotiation is fair and reasonable, taking into account the relevant factors and market conditions.