13. What is “Fair Market Value” (FMV)?

“Fair Market Value” (FMV) is the price at which a property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.

Fair Market Value is a term in both law and accounting that is based on the economics term of “market value.” It is also a common basis for assessing damages to be awarded for the loss of or damage to property, generally in a claim under tort or a contract of insurance.

Fair Market Value is a judgment established by market research of similar vehicles (a.k.a. “comp”) in a specific market region during a given time frame. The goal is to determine at what price the subject vehicle would have sold for at a specific time in a given geographical area.

Vehicle Value Experts employs various recognizable and reliable resources in locating comparable vehicles to effectively ascertain a vehicle’s true Fair Market Value regardless of how unique the property may be.

Vehicle Value Experts offers decades of experience and commitment to excellence and provides its clients with the information they require when it is needed.


Category: Appraisals FAQ

← Faqs
Trustpilot