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Per the IRS, the fair market value of real estate can only be determined by an experienced appraiser.
Elements that go into the appraisal include the size and location of the lot on which the house sits, the size of the house itself, the condition of the house, the quality of the neighborhood, the zoning of the surrounding area and the potential value of the property if used for something else.
You use form 8824 to report the exchange
The above link is for the Instructions to the form 8824.
That would be the line item to show the 1031 exchange funds that are held on deposit by the QI (Qualified Intermediary).