Property Valuation
In a declining real estate market, a property appraiser must be careful about using sales that occurred months earlier because:
AOlder sales are always inadmissible in an appraisal
BOlder sales may reflect higher values from before the decline and must be adjusted downward for market conditions✓ Correct
COnly sales from the current week are considered reliable
DLenders prefer older sales data for greater stability
Explanation
In a declining market, recent sales are more reliable than older ones because market conditions may have changed significantly. An appraiser using stale comparables without time adjustments could overstate value. Appraisers must apply market condition (time) adjustments to reflect current market trends.
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