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Finance: What is Fair Market Value? 3 Views
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Description:
What is Fair Market Value? Fair market value is what something would sell for in the open market given the knowledge of buyers and sellers. It’s usually a term used in real estate, so in this case the fair market value should be about the same as what the property is appraised at.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Accounting
- Terms and Concepts / Banking
- Terms and Concepts / Company Valuation
- Terms and Concepts / Metrics
- Terms and Concepts / Real Estate
- Terms and Concepts / Stocks
- Terms and Concepts / Tax
- Terms and Concepts / Trading
Transcript
- 00:00
Finance a la shmoop what is fair market value? double bubble toil and trouble [Man casting a curse]
- 00:09
what is the fair price of this pile of rubble so this term revolves around the
- 00:16
notion of fair like what is fair and by the way who told you the world was fair
- 00:22
anyway all right but financially fair or at least fair market means what the
- 00:28
market will fairly and legally pay for an asset that's fair and so that means [Man discussing financial fair]
Full Transcript
- 00:35
fair as in not cash from a Somalian warlords leather briefcase but rather
- 00:42
fair as in the legitimate selling price of this excellent two-bedroom three-bath
- 00:46
shoebox in Palo Alto selling for 3 million dollars today for something to
- 00:52
be "of fair market" the buyer has to be knowledgeable and
- 00:57
unpressured i.e the somalian warlord does not in fact have a gun aimed
- 01:02
at the buyers head or any other body part and generally speaking [Gun aims at buyers body parts]
- 01:06
the market itself has to be a legitimate market like real estate or jewelry or
- 01:10
stocks or bonds or whatever if it's an illegitimate market well it's a probably
- 01:15
wondering why it was born out of wedlock so you can't do that
- 01:18
when you assess fair market value things have to be legal and liquid and well
- 01:23
fair whatever the market will pay for it that's the fair value [Hand dealing out cash]
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