Property Valuation
A Connecticut appraiser is valuing a property in a declining market. The appraisal principle of 'change' is relevant because:
AProperty values never decline in Connecticut
BReal estate values are constantly in flux due to economic, social, and governmental forces; the appraiser must reflect current market conditions in the appraisal✓ Correct
CThe appraiser should use prices from 3 years ago when the market was stronger
DOnly new construction is affected by market change
Explanation
The principle of change recognizes that real estate values are not static—they respond to economic cycles, demographic shifts, neighborhood changes, and governmental actions. An appraiser must analyze current market conditions and trends, not rely solely on historical sales.
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