Paired sales are drawn from transactions six months apart in a stable market. The time adjustment needed is:
Correct Answer
C) Minimal, if the market is genuinely flat over that span
Why this is correct: In a stable market, prices do not change significantly over time. If the appraiser documents stability (e.g., consistent median prices, days on market), a minimal or zero time adjustment for a six-month span is supportable. Why the other choices are wrong: A full regression is not required if stability is proven. Six percent is an arbitrary figure, not market-derived. Twice the annual rate is incorrect; adjustments should reflect the actual time period. Exam tip: Time adjustments require market evidence; stability justifies minimal change.
Why This Is the Correct Answer
Why this is correct: In a stable market, prices do not change significantly over time. If the appraiser documents stability (e.g., consistent median prices, days on market), a minimal or zero time adjustment for a six-month span is supportable. Why the other choices are wrong: A full regression is not required if stability is proven. Six percent is an arbitrary figure, not market-derived. Twice the annual rate is incorrect; adjustments should reflect the actual time period. Exam tip: Time adjustments require market evidence; stability justifies minimal change.
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