The selling price is asked to see if there is any tax due via capital gains.
When a decedent dies and leaves the property (outside trust) to a beneficiary, the value of the home receives a "step up" in basis to the FMV on the date of death. That is the estate's basis. If the estate holds on to the property and it goes up in value, then the estate pays capital gains taxes on the amount the home went up.
For example, Mom bought a home for $100,000 and lived there until her death. The estate gets the home at its FMV on the date of death of $200,000. Then the estate sells the home for $205,000 a few months later, the estate owes capital gains on the $5,000 but not on the difference of what Mom paid and the sales price.
