A market-conditions adjustment should be applied to a comparable:
Correct Answer
B) From its contract date to the effective date
Why this is correct: A market-conditions adjustment accounts for price changes between the comparable's contract date (when price was agreed) and the appraisal's effective date (the date of the value opinion). This applies in both appreciating and depreciating markets. Why the other choices are wrong: "From its original listing date through to the report date" is incorrect because the contract date, not listing date, reflects the agreed price. "Only if the sale is more than a year old" is false; adjustments can be needed for shorter periods if the market is volatile. "Only when the market is appreciating" is wrong; declining markets also require adjustments. Exam tip: Always adjust from contract date to effective date, regardless of market direction.
Why This Is the Correct Answer
Why this is correct: A market-conditions adjustment accounts for price changes between the comparable's contract date (when price was agreed) and the appraisal's effective date (the date of the value opinion). This applies in both appreciating and depreciating markets. Why the other choices are wrong: "From its original listing date through to the report date" is incorrect because the contract date, not listing date, reflects the agreed price. "Only if the sale is more than a year old" is false; adjustments can be needed for shorter periods if the market is volatile. "Only when the market is appreciating" is wrong; declining markets also require adjustments. Exam tip: Always adjust from contract date to effective date, regardless of market direction.
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