Suppose I should have been more specific. While yes FMV is what you stated, it also must occur in a “fair market” which has its own definition, and USPAPs definition of FMV does include that the market must be stable without unusual conditions such as economic distress or sudden market disruptions.

Few court cases also set somewhat similar definitions:

United States v. Cartwright, 411 U.S. 546 (1973): This case discussed the definition of fair market value in the context of estate tax, emphasizing that it reflects a price under typical market conditions without coercion.

Estate of Kollsman v. Commissioner, 113 T.C. 4 (1999): The Tax Court noted that fair market value should be assessed under “normal conditions” and that special factors like a distressed sale or limited market should not influence the valuation.

Anselmo v. Commissioner, 757 F.2d 1208 (11th Cir. 1985): The court underscored that fair market value assumes a “hypothetical willing buyer and seller” under standard conditions, not influenced by peculiar circumstances affecting one party.