WHAT IS MARKET VALUE?
“Market Value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion.”
WHAT IS FAIR VALUE?
Fair Value is defined as “the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s-length transaction.”
Fair Value, if market based, is the equivalent of Market Value. Alternatively, it’s the price that is fair between two parties taking into account special circumstances. Although in many occasions Fair Value will equate to the price obtainable in the market, there are cases where Fair Value will take into consideration circumstances and factors that Market Value will disregard.