Which factors are considered transactional differences in an appraisal?

• A. Property differences
• B. Economic differences
• C. Physical differences
• D. Transactional differences

Answer: (D)

Transactional differences are adjustments for how the sale was structured—the terms of the sale, financing, and non-realty items included in the price. These differences capture how the transaction itself can influence the price, separate from what the property actually is or what the market conditions were at the time. For example, whether the buyer paid cash or used financing, the terms of any mortgage assumed, seller concessions or credits, and any personal property or fixtures included in the sale all fall under transactional differences. Property differences would be about the property's physical or legal characteristics, and economic differences relate to market conditions or the date of sale. So focusing on the sale terms and financing clarifies why this category is the right fit.