What is fair market value?

Fair market value is what a buyer is willing to pay for a particular house, given the current market conditions. A seller may be asking a certain price for his property, but it doesn’t necessarily mean that a buyer is willing to pay that price.

Or it could be that a buyer is willing to pay more than a seller is asking. If a buyer learns that there is another offer on the property, he/she might offer a bit more than the seller is asking in the hopes to outbid another buyer.