Property Valuation
When appraising a property in a declining Colorado market, the appraiser's choice of comparable sales should give preference to:
AA. The most expensive sales regardless of date
BB. The most recent sales, as they best reflect current market conditions✓ Correct
CC. Only sales from more than 12 months ago to avoid volatility
DD. Sales from different neighborhoods to get more comparables
Explanation
In a changing market (either declining or appreciating), recent sales are most indicative of current market value. USPAP requires the appraiser to use the most current, relevant, and reliable data. In a declining market, older sales (even 3-6 months old) may overstate value and require negative time adjustments.
Related Colorado Property Valuation Questions
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