Which list correctly identifies the five intangible adjustments used in paired sales analyses?

• A. Property rights conveyed, financing terms, conditions of sale, expenditures made immediately after purchase, and market conditions
• B. Financing terms, conditions of sale, expenditures made immediately after purchase, and market conditions
• C. Property rights conveyed, financing terms, conditions of sale, and market conditions
• D. Property rights conveyed, financing terms, expenditures made immediately after purchase, and market conditions

Answer: (A)

In paired sales analyses, adjustments to the sale price of a comparable are made for differences that aren’t rooted in the property’s intrinsic value, so you can compare like with like. The five intangible adjustments you’d typically recognize are: property rights conveyed, which accounts for whether the buyer received full ownership or something less (such as retained rights or leases); financing terms, which cover differences in how the deal was financed (like seller financing or an assumed loan versus all-cash); conditions of sale, which reflect the motivation and circumstances behind the sale (for example, a forced sale or an unusually quick closing); expenditures made immediately after purchase, which include buyer-paid improvements or costs not included in the sale price that nonetheless affect value; and market conditions, which capture the time period when the sale occurred and changes in market conditions since then. This full set is essential because each category captures a distinct way a transaction can differ from typical market conditions, ensuring the adjustment reflects price differences not tied to the property’s physical attributes. Missing any one of these categories would leave out a factor that can sway price independently of value, which is why the complete list is the correct one.