Property Valuation
How does an appraiser handle a comparable sale that sold under non-arm's-length conditions (e.g., between family members)?
AUses it as any other comparable since price is always valid
BEither excludes it or makes significant adjustments, as it may not reflect true market value✓ Correct
CGives it triple weighting because unusual sales are more reliable
DUses it only for the cost approach
Explanation
Non-arm's-length transactions (family transfers, estate sales, foreclosures) may not reflect true market value. Appraisers typically exclude such sales or apply significant adjustments when analyzing them as comparables.
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