What type of sale is NOT considered bona fide?

A sale between related parties is not considered bona fide due to the potential for the transaction to be influenced by familial or personal relationships rather than market conditions. In such sales, the parties may not operate under typical market forces, leading to prices that do not reflect the fair market value of the property. This lack of objectivity can introduce biases that cloud the true economic value of the transaction.

In real estate appraisals, a bona fide sale is typically characterized by an open market transaction where the buyer and seller are acting in their own self-interest, without coercion or unnecessary influence. The value determined through bona fide sales is essential for appraisals to maintain integrity and accuracy in determining property worth.

Other types of sales mentioned, such as sales between friends, sales under market value, or distress sales, may still occur in the context of a legitimate transaction where both parties act in good faith, even if the conditions differ from standard market conditions. Therefore, a sale between related parties is viewed with more scrutiny and often deemed non-bona fide in appraisal practices.