Which term denotes the price at which a property would sell in an arm's-length transaction between a willing buyer and a willing seller?

• A. Fair market value
• B. Gross value
• C. Skip person
• D. Annuity

Answer: (A)

Understanding fair market value means recognizing the price a property would fetch in an arm's-length sale between a willing buyer and a willing seller, with both sides having knowledge of the asset and no pressure to act. This standard reflects what a typical market transaction would yield, under normal conditions, and it’s the value used in estate planning and probate for asset valuation, taxes, and transfers. The other terms don’t fit this concept: gross value is not the standard market sale price; a skip person isn’t a valuation term; and an annuity is a stream of payments, not a one-time sale price.