In the adjustment sequence, the adjusted sale price becomes the base for subsequent adjustments.

• A. True
• B. False
• C. Only when adjustments are for financing terms
• D. Only when adjustments are for market conditions

Answer: (A)

Adjustments in the sales comparison approach are applied one after another, each to the most recent value. Because you modify the sale price step by step, the result after each adjustment becomes the base for the next adjustment. This makes the effects of all differences compound correctly and prevents double-counting. For example, if a comparable sold for 200,000 and you first adjust for market conditions to 210,000, the next adjustment (say for financing terms) is calculated from that 210,000 figure, not the original 200,000. The same principle applies to every subsequent adjustment, regardless of type.