How can an appraiser ensure that the sales information is credible?

To ensure that the sales information is credible, collecting buyer motivation information is crucial. Understanding why a buyer chose to purchase a particular property can provide valuable context to the sale price and terms. For instance, if a buyer was highly motivated due to personal circumstances, such as family relocation or urgency in finding a home, their willingness to pay could differ significantly from the broader market trend. This knowledge allows appraisers to assess whether the sale was an outlier or reflective of typical market behaviors, thus enhancing the reliability of the data.

Other methods such as estimating effective gross income, determining property sizes, or comparing market trends can provide useful information, but they do not directly address the motivations behind buyer decisions. Appraising properties in context requires understanding the subjective factors that can affect value, making buyer motivation a key aspect of credible sales information.