Skip to content
  • Our Model
    • How It Works
    • See the Math
    • What’s the Catch
  • About Us
    • Our People
    • Our Impact
    • Our Regions
    • Press
  • Referral Partners
  • Resources
    • Calculators
    • FAQs
    • Podcasts
    • Events
    • Glossary
    • Articles
    • Videos
    • Take Our Quiz
Menu
  • Our Model
    • How It Works
    • See the Math
    • What’s the Catch
  • About Us
    • Our People
    • Our Impact
    • Our Regions
    • Press
  • Referral Partners
  • Resources
    • Calculators
    • FAQs
    • Podcasts
    • Events
    • Glossary
    • Articles
    • Videos
    • Take Our Quiz
Get Started
Subscribe
  • Articles
  • Calculators
  • Glossary
  • Podcasts
  • Events
  • Videos
  • Quiz
  • FAQs
Get Started

Back to glossary

What is Fair Market Value?

Fair market value is the price that a buyer and seller agree to for a given asset or property. In real estate, the fair market value is immediately established when there is a firm sale price on a property.

In instances where a sale is not taking place, fair market value may be determined through an independent evaluation process. A third party, usually an appraiser, will consider the property’s location, size, and condition, along with any recent comparable sales in the area, to establish a competitive price that someone would be willing to pay for the property in the open market.

Why is this term important?

Fair market value is important because it provides a standard for determining the value of a property and helps ensure that buyers and sellers are transacting on a fair and equitable basis.

Fair market values are used by service providers including mortgage lenders, when approving a loan application, and insurance companies, to determine the replacement cost of a property in the event of damage or loss.

Here is an example:

Ourboro uses a property’s fair market value in the event that a co-owner chooses to buy out Ourboro’s share of the home. As the home is not being sold in the open market, Ourboro and the co-owner will use an independent appraisal process to determine the fair market value. This value is then used in lieu of a sale price to calculate the value of Ourboro’s ownership share, and therefore the co-owner’s cost to buy out Ourboro’s share.

Related Terms

Beneficial Interest

Related Resources

How It Works

As your co-investor, we purchase a share in the future…
Read More

Share

Share in the ownership of your home, without having to share the remote.

Get Started
Get in Touch

Join our mailing list.

Not ready to buy a home but want to stay in the loop about Ourboro and co-ownership? Sign up for our newsletter to be the first to hear all of our latest updates.
We promise we won’t send you spam and you can unsubscribe at any time.
  • Get Started
  • Contact Us
  • Careers
  • Privacy Policy
  • Terms of Service
  • Partner Login
  • Homebuyer Login
Instagram Facebook Twitter Linkedin Youtube Tiktok Pinterest

© 2025 Ourboro Inc.

Not ready to get started with Ourboro?

Get a crash course on co-ownership, and stay in the loop with Ourboro, by joining our mailing list.

We promise we won’t send you spam and you can unsubscribe at any time.

Have a question or some feedback for our team?

Send us a quick note and we’ll be in touch as soon as we can.
Don’t time the market, time your move-in.
Get in Touch