Property Valuation
A Minnesota appraiser notes that a comparable sale was a 'motivated seller' situation (estate sale, divorce, job transfer). How should this be handled?
AExclude the sale entirely since it is not arm's-length
BNote the circumstances and consider whether an adjustment is appropriate✓ Correct
CUse it without any adjustment since all sales are valid market data
DOnly include it if the sale price was above market
Explanation
Appraisers must evaluate whether distressed or motivated sales reflect the actions of typical, motivated buyers and sellers. If the circumstances suggest the sale was not at full market value (significant below-market price), the appraiser may exclude it or make an adjustment. The appraiser uses professional judgment to determine the sale's reliability as a market indicator.
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