Property Valuation

When comparable sales show a consistent upward trend in prices over the prior 6 months, an appraiser may make a 'market conditions' or 'time' adjustment to:

ADecrease the value of the subject property
BAdjust older comparable sales upward to reflect current market conditions✓ Correct
CEliminate older comparables from the analysis
DReplace the sales comparison approach with the cost approach

Explanation

A market conditions (time) adjustment accounts for changes in market prices between the date of a comparable sale and the effective date of the appraisal. In a rising market, older comparable sales are adjusted upward.

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