Which of the following best describes a market condition adjustment in paired sales?

• A. It accounts for differences in financing terms
• B. It accounts for property rights conveyed
• C. It reflects overall changes in supply and demand since the sale
• D. It adjusts based on property age

Answer: (C)

In paired sales, the market condition adjustment captures how the overall market has moved between the date the comparable property sold and the appraisal date. It reflects shifts in supply and demand, price levels, and market momentum that affect value across many properties, not just one. Financing terms adjustments account for differences in financing between the sale and the subject, property rights conveyed adjustments handle differences in what was sold (such as leases or rights), and age or physical characteristics adjustments address the property’s physical attributes and condition. Because market-wide changes since the sale are what influence value broadly, this adjustment best describes how market conditions have evolved.