An expression that you hear used all the time, the term generally means the price at which a seller will freely sell and a buyer will freely buy.  The dollar amount represented by Fair Market Value becomes important when a home is priced for sale.  Many factors will play into creating a valuation including property location, age, lot size, condition, market demand, and interest rates.  Your best choice to find information to help measure Fair Market Value is by contacting me for a Comparative Market Analysis (CMA).  I will provide a CMA free of charge whether you are looking to sell or purchase.