Fair Market Value (FMV) is the price that a willing buyer and a willing seller would agree upon for an asset in an open market. This value reflects the asset's current worth based on supply and demand, without any pressure to buy or sell. FMV is commonly used in real estate, business valuations, and tax assessments. Determining FMV involves considering various factors, such as the asset's condition, location, and comparable sales. For example, when valuing a house, appraisers may look at recent sales of similar properties in the area to establish a fair price.