Adjustments for market conditions _________.

• A. Are always necessary.
• B. Are never necessary.
• C. May not be necessary in all appraisals.
• D. Must be set at a fixed percentage.

Answer: (C)

Market conditions adjustments reflect how changes in the overall market between the sale date of a comparable and the appraisal date affect value. They aren’t applied as a fixed rule or percentage; instead, you scan market data and determine if and how much the market has shifted. If the comparable sales occurred recently and under the same market conditions as the subject date, there may be little or no adjustment. If the market has shifted noticeably, you quantify that change using evidence (price trends, indices, supply and demand signals) and adjust accordingly. Because market conditions can vary by appraisal and by data available, adjustments may not be necessary in all appraisals.