Property Valuation
An Indiana appraiser finding that a comparable sale was a foreclosure should typically:
AUse it without adjustment
BConsider whether the distressed sale represents market value or requires adjustment as it may not reflect a typical arm's-length transaction✓ Correct
CAutomatically exclude all foreclosure sales
DAlways include foreclosure sales at face value
Explanation
Foreclosure (REO) and short sales may sell below market value due to distressed conditions. Appraisers must consider whether the sale was truly arm's-length and may adjust or exclude such sales when they do not represent typical market conditions.
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