What is considered "fair market value"?

Fair market value is defined as the price that a property would sell for on the open market under normal conditions. This means that both the buyer and the seller are willing participants, neither under duress to buy or sell, and have reasonable knowledge of the relevant facts. It reflects the most accurate measure of the property's worth, based on current market conditions and comparable sales.

This concept is important in various real estate transactions, appraisals, and assessments, as it provides a baseline for determining what a buyer is willing to pay and what a seller is willing to accept in an open market scenario. Understanding fair market value is crucial for real estate professionals, as it aids in pricing strategies, negotiations, and transactions.