Property Valuation
In a Colorado market experiencing rapid price increases, an appraiser must consider:
AA. Using only sales from 12 months ago regardless of market conditions
BB. 'Time adjustments' to comparable sales to account for price appreciation between the sale date and the appraisal date✓ Correct
CC. Ignoring comparable sales and using only the cost approach
DD. Only using the seller's asking price as the value indicator
Explanation
In a rapidly appreciating market, an appraiser must make positive time (market conditions) adjustments to comparable sales that occurred months before the appraisal date. USPAP requires appraisers to reflect current market conditions, which may require adjustments when older sales are used as comparables.
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