Property Valuation
What is 'time adjustment' in the sales comparison approach and when is it used in Nevada?
AAdjusting the time of year the appraisal is conducted
BAn adjustment made to comparable sales to account for the change in market conditions between the comparable's sale date and the appraisal's effective date — used when the market has appreciating or depreciating during the period✓ Correct
CAdjusting for the amount of time the property was on the market
DA Nevada requirement to use only sales within the past 30 days
Explanation
Time adjustments (market condition adjustments) account for value changes between when a comparable sold and the effective date of the appraisal. In Nevada's rapidly appreciating Las Vegas market (2020-2022), appraisers needed to adjust older comparables upward significantly. In declining markets (2008-2012), downward adjustments were needed. Time adjustments are supported by paired sales analysis or index methods showing rate of appreciation/depreciation in the specific market segment.
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