Property Valuation
A comparable sale used in the sales comparison approach should be:
AIdentical to the subject property
BAs similar as possible to the subject property in location, size, age, and condition, sold in arm's length transactions recently✓ Correct
CAlways the most expensive sale in the area
DA distress sale to ensure market value
Explanation
Comparable sales should be as similar as possible to the subject property and should represent arm's length (market) transactions. Distress sales, foreclosures, and related-party sales may not reflect market value.
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