What is an example of conditions of sale that may need to be adjusted in property appraisal?

In property appraisal, conditions of sale refer to the circumstances surrounding the sale of a property that may impact its value. Adjustments may be necessary based on these conditions to ensure an accurate appraisal.

An arms-length sale is one where both the buyer and seller act in their own self-interest, and the transaction is conducted fairly and at market value. Because this type of sale reflects a true market value, very little adjustment is typically needed.

In contrast, a property sold as-is may indicate that the property is being sold in its current condition without any repairs or improvements made by the seller. This can affect the valuation since the buyer might have to invest additional resources to bring the property to a livable standard or to enhance its market value.

A non-arms-length sale occurs when the buyer and seller have a relationship that may influence the price, such as family members or associated entities. This kind of sale often requires adjustments, as the price may not reflect the true market value due to various motivations beyond financial gain.

Selecting both arms-length sale and non-arms-length sale for adjustment is insightful because, while arms-length sales generally require minimal adjustments, the unique factors associated with non-arms-length sales, such as familial relationships or other biases, can lead to