A market-conditions adjustment derived in one neighborhood is applied to a comparable in a different submarket. This requires:
Correct Answer
A) Evidence that the two submarkets moved together
Why this is correct: Market conditions (time adjustments) can vary between submarkets. To apply an adjustment rate from one area to another, the appraiser must provide evidence—such as paired sales analysis or price trend data—that both submarkets have experienced similar price movements over the same period. Why the other choices are wrong: Time does not affect all markets equally; submarkets can diverge. Using judgment alone with no supporting analysis is insufficient and violates standards. Sharing a ZIP code does not guarantee identical market behavior. Exam tip: Never assume submarkets move together. Prove it with data.
Why This Is the Correct Answer
Why this is correct: Market conditions (time adjustments) can vary between submarkets. To apply an adjustment rate from one area to another, the appraiser must provide evidence—such as paired sales analysis or price trend data—that both submarkets have experienced similar price movements over the same period. Why the other choices are wrong: Time does not affect all markets equally; submarkets can diverge. Using judgment alone with no supporting analysis is insufficient and violates standards. Sharing a ZIP code does not guarantee identical market behavior. Exam tip: Never assume submarkets move together. Prove it with data.
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