Property Valuation
When analyzing a sale for use as a comparable, the appraiser should first verify that it was an:
AMLS-listed sale
BArm's-length transaction between unrelated, knowledgeable, and uncompelled parties✓ Correct
COwner-financed transaction
DSale approved by the county assessor
Explanation
Before using a sale as a comparable, the appraiser must verify it was an arm's-length transaction (willing buyer, willing seller, neither under compulsion, both reasonably informed). Non-arm's-length sales may not reflect market value.
Related Arkansas Property Valuation Questions
- In Arkansas, appraisers are licensed and regulated by:
- The principle of HIGHEST AND BEST USE means the use that is:
- External (economic) obsolescence differs from other forms of depreciation because it is:
- Reconciliation in appraisal refers to:
- What does 'highest and best use' mean in appraisal?
- Which appraisal approach is most commonly used for appraising special-purpose properties such as churches or schools?
- What is the purpose of a Broker Price Opinion (BPO)?
- An appraisal is best defined as:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →