To achieve fair market value, buyers and sellers must be under what kind of conditions?

Fair market value is defined as the price at which property would sell in a competitive and open market. For buyers and sellers to arrive at this value, it is essential that they operate under conditions of no pressure. In a pressure-free environment, both parties can make informed decisions without the influence of stress, coercion, or urgency. This lack of pressure allows for genuine negotiation, where both the buyer and seller can assess the property's worth based on its characteristics, market conditions, and comparable sales, leading to a mutually acceptable price.

Operating in a scenario free from external pressures ensures that all parties have the opportunity to conduct due diligence, consider their options, and arrive at a fair conclusion. This principle highlights the importance of fairness and equality in the valuation process, ensuring that the final agreement is a true reflection of the property's market value rather than a result of undue influence or rushed decisions.