Property Valuation
When an appraiser determines that a comparable sale was made under duress (foreclosure), how should the appraiser treat it?
AUse it as a primary comparable without adjustment
BDiscard it or carefully adjust for the distressed conditions that affected the sale price✓ Correct
CDouble the adjustment for market conditions
DUse the assessed value instead
Explanation
Distressed sales (foreclosures, short sales) may not reflect arm's-length market conditions. Appraisers either exclude them or apply significant adjustments to reflect true market value.
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