The reason IRS wants a valuation is because there is a gift limitation without tax. That amount for 2022 is a mere
$16,000. Anything above that is subject to tax. If you were to give it to the person as a part of your estate (when you die) the limit of no tax is 12 million dollars.
What you might consider is gifting the person in stages so that no tax is required. For example... Let's say the house is worth $160,000 you could gift $16,000 this year and then the same amount for another 9 years (it won't really be that long because the exempt amount goes up nearly every year).
And you will not have to complete the form 709!!!
With all that said.... If you don't care about the tax paid and it isn't a burden on either you or the recipient, then just go ahead and gift it...
