Property Valuation
A Louisiana appraiser notes that a comparable sale was a foreclosure and the seller was highly motivated to sell at a discount. This sale would likely be:
AUsed without adjustment as a valid arm's length transaction
BDiscarded or significantly adjusted because it does not represent a typical arms-length market transaction✓ Correct
CUsed as the primary comparable for distressed property valuations only
DMultiplied by 1.15 to adjust to market value
Explanation
Foreclosure sales are typically distressed sales where the seller (often a lender) is motivated to sell quickly at a discount. They do not represent typical arms-length market transactions and should be either excluded or significantly adjusted in appraisal analysis.
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