Arm’s Length or Another Type of Sale? The 7 Sale Types Explained
What types of sales for appraisals
Excerpts: As a real estate appraiser, whether you’re considering the current terms of sale or analyzing previous sales of the subject property or comparable sales, it is imperative to know whether a sale is an arms-length transaction or a different type of sale. Sales due to a job relocation, estate settlement, foreclosure, or divorce may sell for less than the property’s market value.
By knowing the type of sale, you are better able to reconcile a current opinion of market value that falls above or below a current or recent transaction for the subject property.
Here are the seven valid sale types, explained in detail below:
- REO sale
- Short sale
- Court ordered sale
- Estate sale
- Relocation sale
- Non-arm’s length sale
- Arm’s length sale
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My comment: Worth reviewing. Some good tips, especially for today’s crazy sales market!
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