Definition of Fair Market Value

What is the definition of the term "fair market value"? What does "fair market value" mean?

Let's say that you own an asset - for the purposes of this definition, let's say that you own a 1999 Ford Mustang.

How much could you sell your car for if you were not under pressure to find a buyer immediately? How much could you sell your car for if a potential buyer was not under pressure to buy a car immediately?

How much could you sell your car for if both you and a potential buyer were both knowledgeable about cars?

This is "fair market value" - the value of an asset in a normal market with unpressured and knowledgeable buyers and sellers.

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