Property Valuation
A Colorado appraiser notes that a property is in a 'declining market.' This means adjustments to older comparable sales should:
ABe positive (upward) to reflect rising values
BBe negative (downward) to reflect that earlier sales were made at higher prices in a declining market✓ Correct
CNot be made since market conditions are irrelevant
DOnly apply if the decline is more than 10%
Explanation
In a declining market, properties that sold in the past sold at higher prices than current market. Therefore, comparable sales from earlier periods need downward (negative) market conditions adjustments to reflect the current lower value environment.
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