Fair market value is an important concept to understand. In this video, you will learn everything you need to know about fair market value, including what it is and how it works. With this information, as you live your life over several years, you will be able to make informed decisions as you buy and sell goods. Ideally, the value of the goods being exchanged will be fair to both parties.
In order for a market value to be fair, certain conditions must be met. If both parties understand what the goods are that are being exchanged, as in, knowing all the facts about them, then this prevents one party from being deceived by the other.
Both parties must also have an interest in the trade. In other words, both parties will happily make the exchange. There are FMV tools that can help you be informed about the value of goods.