AppraisalsHomebuying Glossary
Fair Market Value
Also known as FMV
The price a property would reasonably sell for between a willing buyer and seller.
In plain English
Fair market value represents what a property would sell for in an open market, with neither buyer nor seller under unusual pressure. It's the concept both appraisals and CMAs try to estimate.
Why it matters
Fair market value can differ from a home's assessed value (used for taxes) or its listing price (a seller's ask), which is a common source of buyer confusion.
Where you'll run into it
Guides and tools on TheBuyingPath that cover fair market value in context.
Related terms
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