The principle of change reminds the appraiser that:
Correct Answer
A) Value conclusions are perishable — everything is in transition
Why this is correct: The principle of change recognizes that real estate markets and property conditions are dynamic. Therefore, an appraisal's value conclusion is only valid as of a specific effective date and becomes outdated as conditions evolve. Why the other choices are wrong: 'Adjustments must change between grids' is wrong; this is a procedural detail, not the core principle. 'Clients always remain free to amend the assignment terms at any point' is wrong; this relates to client agreements, not the principle of change. 'Zoning ordinances are revised annually' is wrong; this is a possible example of change, but not the definition of the principle. Exam tip: The principle of change is why every appraisal must have an effective date—value is a snapshot in time.
Why This Is the Correct Answer
Why this is correct: The principle of change recognizes that real estate markets and property conditions are dynamic. Therefore, an appraisal's value conclusion is only valid as of a specific effective date and becomes outdated as conditions evolve. Why the other choices are wrong: 'Adjustments must change between grids' is wrong; this is a procedural detail, not the core principle. 'Clients always remain free to amend the assignment terms at any point' is wrong; this relates to client agreements, not the principle of change. 'Zoning ordinances are revised annually' is wrong; this is a possible example of change, but not the definition of the principle. Exam tip: The principle of change is why every appraisal must have an effective date—value is a snapshot in time.
More Market Questions
Building permit data is most useful to an appraiser as:
In the neighborhood life cycle, what characterizes the decline stage?
In which phase of the real estate cycle do rising vacancies first meet a still-growing construction pipeline?
The principle of consistent use prohibits:
Employment in a one-industry town falls 20%. Through what mechanism does housing demand contract?
Frictional vacancy in a rental market refers to:
The principle of opportunity cost applied to real estate means:
A neighborhood with a wide range of property values requires the appraiser to:
In-migration to a metro area increases housing demand primarily by:
Absorption rate expressed in units per month is calculated by:
People Also Study
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Income Approach
8.2% of exam