Glossary

What is Fair Market Value (FMV)?

Last updated July 2026

Definition

Fair market value (FMV) is the price surplus equipment would sell for between a willing buyer and seller, neither under pressure. It is the benchmark for resale and for flagging overpriced purchases.

Also known as: FMV

FMV differs from liquidation value: it assumes a reasonable marketing period and normal conditions, so it is typically the highest of the common value standards.

For surplus assets, FMV converts an 'unknown pile' into a priced, sellable position — and gives procurement a benchmark to catch overpriced buys before they're placed.

Benchmark

FMV > orderly liquidation value > forced liquidation value.

Sources: Amplio

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