Property Valuation
A Mississippi appraiser discovers that a recent comparable sale was a 'related-party transaction' (between family members). This sale should be:
AUsed as the primary comparable because it was recently recorded
BExcluded or flagged, as it may not represent arm's-length market value✓ Correct
CAdjusted upward by 10% to compensate for the non-market conditions
DReported to MREC
Explanation
Arm's-length transactions between unrelated, independent parties reflect market value. Related-party transactions may not represent typical market conditions and should be excluded or used with caution and disclosure.
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