The definition of Fair Market Value(FMV) According to WikiPedia.
"Fair market value (FMV) is an estimate of the market value of a property, based on what a knowledgeable, willing, and un-pressured buyer would probably pay to a knowledgeable, willing, and un-pressured seller in the real estate market. An estimate of fair market value may be founded either on precedent or extrapolation. Fair market value differs from the intrinsic value that an individual may place on the same asset based on their own preferences and circumstances."
- Donor Value is $1000
- Fair Market Value(FMV) is $600
- Average selling price on silent auction items is 70% of FMV.
- That's an average selling price of around $420 for this item.
- If we use a Formula of opening bids at 40% of Donor Value, that has us starting at $400 and an expected selling price of $420.
- Good luck convincing your Silent Bidders they are getting any kind of deal on that item.