Property Valuation
An appraiser in Wyoming notes that a comparable sale was a 'distress sale' (lender-required quick sale). How should this affect the appraisal?
AIt can be used as-is since all sales are valid comparables
BIt may need to be adjusted upward or excluded, as distress sales may not reflect market value✓ Correct
CIt must be given the most weight as the most recent sale
DIt should only be used in the cost approach
Explanation
A distress sale (foreclosure, bankruptcy, or motivated seller sale) may not reflect the market value definition (willing buyer, willing seller, neither under duress). Appraisers should make a market conditions adjustment, exclude the sale, or note that it may not represent market value.
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