Property Valuation
In Kansas, a commercial appraiser analyzing a 'sale-leaseback' transaction must be particularly careful because:
ASale-leaseback transactions require KREC approval
BThe sale price in a sale-leaseback may not reflect market value since lease terms negotiated between buyer and seller can affect the price✓ Correct
CSale-leasebacks always inflate value artificially
DOnly owner-occupants can do sale-leaseback transactions
Explanation
In a sale-leaseback, the purchase price is affected by the negotiated lease terms (above or below market rent). The appraiser must analyze whether the transaction reflects market value or was influenced by non-market factors.
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