In an appraisal, which type of data is essential to verify for comparable sales?

In an appraisal, verifying the method of sale prices for comparable sales is crucial because it ensures that the sale figures being analyzed are accurate reflections of the market conditions. This verification involves confirming whether the price reported in a sale transaction represents a cash sale, a financed sale, or a distressed sale, among other types. Understanding the context in which the sale occurred is essential for making accurate comparisons to the subject property being appraised.

For instance, if comparable sales were conducted under conditions that differ significantly from normal market transactions—such as foreclosures or sales between family members—this might skew the perceived value of those sales. Identifying the method of sale helps appraisers assess whether adjustments are needed to arrive at a fair market value for the property in question.

Other aspects, such as the buyer's financial qualifications, may provide context about the buyer but do not necessarily affect the comparable sales data itself. Similarly, knowing the completion dates of sales helps contextualize when the values were established, but it is the method of sale prices that provides the most direct insight into the value against which the subject property will be compared. Ownership history may also be relevant, but it does not directly influence the determination of current market value as the verification of sale prices does.