Property Valuation
In Washington, a 'pocket listing' or off-market sale may affect the accuracy of comparable sales data because:
APocket listings are illegal in Washington
BOff-market sales may not reflect true arm's-length market conditions✓ Correct
CAll pocket listing prices must be reported to the DOL
DThey are always above market value
Explanation
Pocket listings (off-market sales without full MLS exposure) may involve less competition and may not represent true arm's-length fair market conditions. Appraisers use market data carefully when off-market sales are used as comparables.
Related Washington Property Valuation Questions
- An appraiser for a Washington bank is appraising a small apartment building that the borrower claims is worth $1.2 million. The appraiser's independent analysis indicates a value of $950,000. Under USPAP, the appraiser must:
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