The price that can be obtained for property by a willing buyer and willing seller is called:

Question

Quizplus · Accepted Answer

Fair market value 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 sell, and both having reasonable knowledge of the relevant facts. It is the most commonly used valuation method for real estate. Fair market value is the price that a willing buyer and a willing seller agree to when both are given full knowledge of the property's advantages and disadvantages, its present use, its potential use, and the financial and economic conditions prevailing in the marketplace.

The Price That Can Be Obtained for Property by a Willing