What can the conditions of sale impact when selecting comparables?

The conditions of sale can significantly influence the estimation of fair market value when selecting comparables. When determining the fair market value of a property, it’s crucial to analyze how similar properties have been sold recently. This includes considering any unique conditions under which the sales occurred, such as whether the sales were between related parties, involved special financing, or were subject to contingencies.

If the conditions surrounding the comparables differ from typical market transactions, they could skew the perceived value of those properties. For example, a property sold at a below-market price due to a family transaction might not reflect its true market value. Therefore, understanding these unique conditions helps in more accurately assessing the fair market value of the property in question, leading to a more precise and fair comparison.

Other factors, such as buyer financing options, total selling price, and time on the market, may also contribute to the overall analysis but do not directly affect the fundamental estimation of fair market value in the same way that conditions of sale do.