Fair Market Standard of Value is defined as the price at which the property would change hands between a 'hypothetical' willing buyer and a 'hypothetical' willing seller. Is this statement true or false?

The statement is true. The Fair Market Standard of Value is specifically defined as the price at which property would change hands between a hypothetical willing buyer and a hypothetical willing seller, both having reasonable knowledge of the relevant facts and neither being under any compulsion to buy or sell. This definition encapsulates the essence of fair market value, emphasizing that it is established in an open and competitive market where both parties have the freedom to negotiate and act in their own self-interest.

This concept is crucial for valuation purposes, such as determining the value of a business, real estate, or other assets in various contexts, including buying, selling, or litigation. It helps to ensure that valuations are based on realistic market conditions, reflecting what a knowledgeable buyer would pay and what a knowledgeable seller would accept in an unrestricted market. Other statements might not adhere to this precise definition, possibly incorporating elements like forced sales or emotional considerations, which do not contribute to the fair market value assessment.