Property Valuation
In Louisiana, the 'market conditions adjustment' in an appraisal's sales comparison approach accounts for:
ADifferences in property size between comparables
BChanges in market prices over time between when comparable sales occurred and the effective date of the appraisal — ensuring comparables reflect current market conditions✓ Correct
CDifferences in the age of the comparables
DThe appraiser's subjective assessment of market trends
Explanation
Market conditions (or time) adjustments account for changes in market prices between the comparable sale date and the effective appraisal date. In a rising market, older comparables need upward adjustments; in a declining market, downward adjustments are appropriate.
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