Property Valuation
A Wisconsin foreclosure sale price is generally NOT used as a comparable sale in an appraisal because:
AForeclosures are too common
BForeclosure sales may not reflect arm's-length market value due to lender's urgency to sell✓ Correct
CForeclosures are always below market value by exactly 20%
DOnly FHA appraisals exclude foreclosures
Explanation
Foreclosure sales often occur under distressed conditions that may not reflect what a willing, motivated buyer and seller would agree to in an arm's-length transaction.
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