Applying a market conditions adjustment derived from detached homes to a condominium comparable requires:

Correct Answer

D) Support that the two segments moved together

Why this is correct: The correct answer is 'Support that the two segments moved together.' The governing concept is that different property types (e.g., detached homes vs. condominiums) can experience different rates of price change over time. To apply a market conditions adjustment from one segment to another, an appraiser must have empirical evidence demonstrating that the price trends for both segments moved in tandem during the relevant period. The original explanation correctly states that product types can diverge, so using a rate from one for the other is a testable claim requiring support. Why the other choices are wrong: 'Excluding the condominium from the grid' is wrong because a comparable property should not be excluded simply for being a different product type; adjustments can be made if properly supported. 'No support, since time affects all properties' is incorrect because while time affects all markets, the magnitude and direction of change are not uniform across property types. 'Halving the rate for the condominium' is wrong as it is an arbitrary adjustment without a logical or empirical basis. Exam tip: Remember that adjustments across property types are never automatic; they always require specific market evidence of correlated price movement.