What Does FMV Stand for?

FMV Stand for Fair Market Value

What is (FMV) Fair Market Value?

Fair Market Value is defined as the value of a property which can be ordinarily obtained at a particular time by selling a property in an open market.

FMV-fair market value

Methods of Determining Fair Market Value?

there are four methods of determining the fair market value.

  • Cost of the Product
  •  Selling Price of a Product  
  •  Selling of Similar Products
  •  Opinion of experts

How to determine Fair Market Value

Fair market value can be determined by the following methods

1.Cost price

we can also determine the Fair Market Value of the products according to the cost of that product that occurs to make that product.

2.Selling Price

We can determine the Fair Market Value of a product with the help of the selling price of products that are recently sold. according to the recently sold products, we can predict the Fair Market Value of the existing products.

3.Comparable Goods

we can determine the fair market value of the products by comparing similar goods. if the same goods are sold at a particular price then we can realize the new good Fair Market Value same as the comparable goods.

4.Experts Opinion 

Fair Market Value can be predicted by the experts. they have the knowledge to obtain the Fair Market Value of anything by their experience and knowledge