Which sale most likely requires a conditions-of-sale adjustment?
Correct Answer
D) A sale by a divorcing couple ordered to liquidate by month's end
Why this is correct: Conditions of sale adjustments account for market value differences caused by atypical motivations or circumstances of the buyer or seller. A court-ordered sale under a tight deadline creates duress, likely forcing the seller to accept a price below what could be obtained in a typical, unhurried market exposure period. Why the other choices are wrong: "A 60-day ordinary sale through the MLS" represents typical market exposure. "A sale to a buyer relocating for work on a normal timeline" involves ordinary motivation. "A sale with a standard 3% earnest deposit" is a typical contract term, not an atypical condition of sale. Exam tip: Look for signs of compulsion (estate, foreclosure, divorce, relocation under tight deadline) or unusual concessions (seller-paid buy-downs, excessive personal property included) that distort price.
Why This Is the Correct Answer
Why this is correct: Conditions of sale adjustments account for market value differences caused by atypical motivations or circumstances of the buyer or seller. A court-ordered sale under a tight deadline creates duress, likely forcing the seller to accept a price below what could be obtained in a typical, unhurried market exposure period. Why the other choices are wrong: "A 60-day ordinary sale through the MLS" represents typical market exposure. "A sale to a buyer relocating for work on a normal timeline" involves ordinary motivation. "A sale with a standard 3% earnest deposit" is a typical contract term, not an atypical condition of sale. Exam tip: Look for signs of compulsion (estate, foreclosure, divorce, relocation under tight deadline) or unusual concessions (seller-paid buy-downs, excessive personal property included) that distort price.
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Previous Question
A comparable sold for $400,000, needs a +5% market-conditions adjustment and a −$15,000 garage adjustment. Applying the standard sequence, the indicated value is:
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A comparable in a neighborhood commanding 5% more than the subject's sold for $420,000. What is the location-adjusted price?