Property Valuation
An appraiser completing a sales comparison approach for a home in Chapel Hill finds a comparable that sold 8 months ago. The appraiser must make a:
ANo adjustment; 8 months is recent enough
BLocation adjustment
CMarket conditions (time) adjustment if the market has changed✓ Correct
DMandatory 5% reduction for the age of the sale
Explanation
An appraiser must make a market conditions (time) adjustment to comparable sales when market values have changed since the comparable's sale date. In an appreciating market, a positive time adjustment would be applied; in a declining market, a negative adjustment.
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