Fair Market Value

Fair Market Value (FMV) is the price that consumers are willing to pay for a product or service in an open and competitive market.

This is a price a buyer and seller mutually agree on. As a result, it might differ from the actual product price as it refers to the reasonable cost at which the buyers will make a purchase voluntarily, not acting under any pressure.

Two common ways to assess the FMV are based on the price of a recently sold comparable product or using expert opinion.