Where does fair market value come from??
A fair market value is often an estimate of what a willing buyer would pay to a willing seller, both in a free market, for an asset or any piece of property. If such a transaction actually occurs, then the actual transaction price is usually the fair market value. Note that the opinion of people that are not interested in buying or selling an asset has little meaning, because they are not active in the market. Thus, “market value” (which is the same for everyone in the market) is not identical to the “intrinsic value” that different individuals may place on the same asset based on their own preferences and circumstances. Answer furnised by Wikpedia. When marketing a home, Fair Market Value is established when a home exposed to a sufficient number of qualifed buyers to determine what a buyer is willing to pay and a seller is willing to accept.
