Property Valuation
A Mississippi appraiser notes that a comparable sale was a 'distressed sale' (foreclosure). How should this affect the use of that comparable?
AUse it without adjustment because all sales reflect the market
BAdjust or exclude it because distressed sales may not reflect typical market conditions✓ Correct
CGive it more weight because it is the most recent sale
DUse it only for the cost approach
Explanation
Distressed sales (foreclosures, short sales) may not represent typical market value because the seller is under duress. Appraisers should use arm's-length, open market transactions as comparables, adjusting or excluding non-arm's-length sales.
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