During verification, if the buyer is the grandson of the seller, what should the appraiser do with this sale?

• A. Use it as a primary comparable
• B. Use it with a heavy adjustment
• C. Rely on it for the final value
• D. Disregard it or set it aside

Answer: (D)

When verifying sales, the appraiser looks for arm's-length transactions. A sale where the buyer is the seller’s grandchild is not arm's-length because family relationships can influence price or terms, making the transaction less reflective of true market behavior. Because of this potential bias, such a sale should be disregarded or set aside and not used as a comparable. It should not be relied upon for final value, and attempting to adjust it to fit market data can mislead the appraisal. Instead, focus on other arm's-length comparable sales from similar properties, and document why this transaction was excluded. If you note it, explain that the related-party nature means it may not represent market value, and rely on independent data to support the value conclusion.