In addition to terms of sale, which factor must the appraiser verify?

• A. The sale was an arms-length transaction
• B. The property tax status is current
• C. The property has no liens
• D. The zoning designation is correct

Answer: (A)

In the sales comparison approach, you want the sale price to reflect typical market conditions, not unusual arrangements. Verifying that a sale was arms-length ensures both parties acted independently and no special concessions, related-party influence, or favorable financing distorted the price. This makes the price a more reliable indicator of market value. While checking other aspects like taxes, liens, or zoning is important for context and feasibility, the essential step tied directly to the integrity of the sale price itself is confirming the sale was arms-length.