Property Valuation
A Massachusetts appraiser notes that a comparable property is a 'distressed sale' (foreclosure). The appraiser should:
AUse it as an equal comparable to arm's-length sales
BAnalyze whether the distressed nature affected the price and adjust or discard accordingly✓ Correct
CAutomatically discount the value by 20%
DReport only distressed sales to reflect market realities
Explanation
Distressed sales may not represent arm's-length market transactions. Appraisers must analyze whether distress affected the price and appropriately adjust for or exclude such comparables based on market evidence.
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