Property Valuation
A NJ appraiser who discovers during their analysis that two 'comparable' sales were not arm's-length transactions (e.g., foreclosure sales, estate sales at distressed prices) should:
AUse them anyway since they are recorded sales
BExclude them from the primary analysis or adjust for the distressed conditions✓ Correct
CUse the highest distressed sale as the primary comparable
DAverage them with arm's-length sales without adjustment
Explanation
Non-arm's-length transactions do not represent market value. Appraisers should exclude distressed or non-arm's-length sales from the comparable sales grid or make significant documented adjustments if they must be referenced.
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