Which statement is true regarding sale dates of comparable sales and adjustments for market conditions (time)?

• A. Even recent sales may require time adjustments
• B. Time adjustments are optional
• C. Recent sales never require time adjustments
• D. Time adjustments are only for older sales

Answer: (A)

Time adjustments are used to align the sale prices of comparables with the market conditions at the subject property’s date of value. Markets don’t stay the same, even over short periods, so a sale that happened before the appraisal date can reflect different conditions than those affecting the subject today. If the market has strengthened since the sale, you would adjust the comp’s price downward to what it would have likely sold for at the subject’s date; if the market has weakened, you’d adjust upward. Because market conditions can shift quickly, even a relatively recent sale may require a time adjustment to ensure comparables are on the same market basis as the subject.