Property Valuation
An appraiser comparing a subject property to a comparable that sold 18 months ago would need to make a time (market conditions) adjustment because:
AAll properties lose value after 18 months
BMarket values may have changed since the comparable sold, and the adjustment reflects current market conditions✓ Correct
CNebraska law requires adjustments for any sale older than 6 months
DThe comparable's financing terms must be matched to current rates
Explanation
A time adjustment accounts for changes in market conditions between the date of a comparable sale and the effective appraisal date, reflecting appreciation or depreciation in the local market.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
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