Sellers often think it is the price they want to receive.
On the other hand, buyers will tell you it is the price they want to pay. Fair market value is a result of supply and demand, a balance between the needs of both buyers and sellers. When a home is placed on the market, it is the responsibility of the sellers to price the home at a level that will attract buyers. After all, if the home is priced too high, it will not sell. Often, buyers and sellers think the real estate agent sets the price.