- Funding Info
- Dictionary
Fair market value
Fair market value is supposed to represent the most accurate assessment of the value of an asset. Fair market value is worked out using the following assumptions: potential buyers and sellers are reasonably knowledgeable about the asset and will act in their own best interest and are not under pressure to conclude a deal. A second condition that must be applied to work out the fair market value is that the buyer and seller must be given a reasonable time period in which to complete the transaction.