If a sales price or terms cannot be verified by a party to the transaction or by the local assessment office, what is usually wise to do?

• A. It is usually wise to set aside the transaction for more reliable sales transactions.
• B. Proceed with the transaction but note the uncertainty in the report.
• C. Use the data with a discount to reflect uncertainty.
• D. Assume the price is credible if other data matches.

Answer: (A)

Verifiable data are essential in the sales comparison approach. When the sale price or terms can’t be verified by someone involved in the transaction or by the local assessment office, including that sale could introduce bias or error. Therefore, it’s usually wise to set aside the transaction and rely on more reliable, verifiable sales data to support the value opinion. This keeps the appraisal grounded in credible evidence and avoids speculative adjustments. Proceeding with the sale, applying a discount to reflect uncertainty, or assuming credibility based on other data can all lead to misstatement of value because the fundamental data aren’t confirmed.