Property Valuation
An appraiser finds that a comparable sale was distressed (foreclosure sale at below-market price). The appraiser should:
AInclude it as a primary comparable without adjustment
BExclude it or make appropriate adjustments for the distressed nature✓ Correct
CUse it only for the cost approach
DDouble its weight since it represents true market activity
Explanation
Distressed sales (foreclosures, short sales) often do not reflect arm's-length market conditions. Appraisers should either exclude them from the primary analysis or make significant adjustments to account for the below-market nature of the transaction.
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