Property Valuation
What does 'arm's length transaction' mean in Nevada real estate appraisal?
AA transaction where the buyer and seller must be at least one arm's length apart physically
BA transaction between unrelated, fully informed parties acting in their own best interest without duress — the standard used to establish comparable sales in appraisal✓ Correct
CA transaction approved by an independent third party
DA transaction within Nevada's legal guidelines
Explanation
An arm's length transaction involves unrelated buyers and sellers, both fully informed, acting without duress, each seeking their own best interests. Nevada appraisers use arm's length sales as comparable sales. Sales between related parties, distressed sales, or foreclosures may not qualify as arm's length.
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