When it comes to valuing property or assets, the term "fair market value" (FMV) is often used. FMV is defined as the price that a willing and informed buyer would pay for an asset, assuming that both the buyer and seller are acting in their own best interests. This concept is often used by non-profit organizations when determining the value of donated items for tax purposes. For example, if someone donates a painting to a museum, the museum can assign a fair market value to the painting based on its current market value. This information is then used to calculate the donor's tax deduction. In addition, FMV is also sometimes used in estate planning and real estate transactions. When determining the FMV of a property, appraisers will consider factors such as location, recent sale prices of similar properties, and any renovations that have been made. Ultimately, the goal is to arrive at a fair and accurate valuation that reflects the true market value of the asset in question.