A valuer discovers that a comparable sale was between related parties at below-market price after completing their initial analysis. According to API standards, what is the most appropriate course of action?
Correct Answer
C) Exclude the sale and source alternative comparables
API standards require that comparable sales represent arm's length transactions between unrelated parties. Sales between related parties at non-market prices should be excluded as they don't reflect true market value, and alternative arm's length comparables should be sourced to ensure valuation accuracy and professional standards compliance.
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A valuer discovers after completing a valuation that one of the comparable sales used was between related parties at below-market terms. According to API standards, what should the valuer do?
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