Also known as: subjective value · objective value · subjective-value · objective-value · fair market value · personal value
Written by attorneys · grounded in primary & secondary sources — see below
A distinction in the valuation of property or services that separates the personal worth to a particular recipient from the price determined by the market. Objective value supplies the default measure in damage calculations and estate inventories because it relies on observable market data rather than individual preferences.
Selena Singh terminates her lease after the landlord fails to make required repairs. The court measures her damages by the fair market value of the remaining lease term on the termination date rather than any personal attachment she felt toward the premises. This objective figure determines the amount she recovers.
Sierra Santos serves as personal representative for her aunt's estate. Within three months she files an inventory that lists each asset at its fair market value on the date of death together with any encumbrances. The probate court accepts the filing because it supplies the required objective data.
Select any source to read its text and confirm it supports the definition.
Stonehaven Properties challenges the city's taking of its waterfront parcel. The court awards compensation based on the parcel's fair market value immediately before the taking rather than any unique development plans the owner had contemplated. This objective standard fixes the constitutional payment.
Seth Shapiro incurs out-of-pocket expenses after relying on Red Owl's assurances that a franchise would be granted. The court measures damages by the objective value of the expenditures rather than any subjective expectation of future profits from the store. This limits recovery to reliance loss.
Courts apply objective market value as the default measure for damages, estate inventories, and deficiency judgments because it rests on observable data rather than individual preferences. The contracts supplement states that objective value is the more common means of valuing property or services.
Supporting sources
A right of first refusal priced at an outdated book or series valuation may become an unreasonable restraint when current fair market value has risen sharply. Essay questions illustrate that tying the price to an objective benchmark at execution satisfies reasonableness while a fixed historical figure does not.
Supporting sources
The personal representative must list each asset with reasonable detail and state its fair market value as of the date of death. The statute requires objective valuation even for uncertain assets, though reasonable detail rather than absolute precision suffices.
Supporting sources
Restatement (Third) of Property § 8.4 permits the deficiency defendant to insist on the greater of fair market value or foreclosure sale price. This objective measure prevents the mortgagee from purchasing at a depressed price and then obtaining an inflated deficiency.
Supporting sources
…"urban renewal" programs provide some compensation for the properties they take, but no compensation is possible for the subjective value of these lands to the individuals displaced and the indignity inflicted by uprooting them from their homes. Allowing the government to take property solely for public purposes is bad…