1.5.2.2. Selection and Verification of Sales. In selecting the comparable sales to be used in valuing a given property, it is fundamental that all sales have the same economic highest and best use as the subject property and that the greatest weight be given to the properties most comparable to the subject property. In this regard, appraisers must recognize that when valuing a property with a highest and best use that will require rezoning or extensive permitting, sales of similar properties may require extensive analysis and adjustment before they can be deemed economically comparable. The analysis and adjustment of such sales is discussed below. 

All comparable sales used must be confirmed by the buyer, seller, broker, or other person having knowledge of the price, terms, and conditions of sale.53 When a comparable sale is of questionable nature and/or admissibility (e.g., sales to a government entity), special care must be taken in the verification of the circumstances of the sale.54 The appraiser must collect adequate information about each sales transaction to support a detailed analysis in the adjustment process. In most cases this would include a physical inspection of each property selected as a comparable sale. If the appraisal is being prepared for the Department of Justice, a physical inspection of each sale selected as a comparable is required. 

The appraiser should collect and analyze the recent sales history of properties selected as comparable sales. This information can be useful in analyzing trends in the market and evaluating the impact of the government project on market value after acquisition.

53 These Standards require that sales verification be conducted by competent and reliable personnel, and if the case goes into condemnation, the sale must be personally verified by the appraiser who will testify. However, appraisers should recognize that some agencies may require in their appraisal contracts that initial verification be made by the appraiser who will sign the appraisal report.

54 For a description of the verification process required by these Standards for such sales, see Section 1.5.2.4. See Section 4.4.2.4 for the legal bases for these requirements.