Why is time adjusted first in the sequence of adjustments when valuing a subject property against comparables?

Why is time adjusted first in the sequence of adjustments when valuing a subject property against comparables?

• A. To align comparables to today's date
• B. To reflect seasonal fluctuations in market activity
• C. To adjust for financing terms
• D. To account for property taxes

Answer: (A)

Time adjustments are done first because market conditions change over time and directly drive price levels. By bringing every comparable up or down to the subject property's date, you remove the effect of market movement so you can compare the true differences in value due to physical features, location, or terms. Once the comparables are aligned to the same date, you can adjust for other factors like size, condition, or taxes more accurately. If time weren’t adjusted first, later adjustments could misattribute market movements to other characteristics, leading to an incorrect value. Seasonal patterns are part of market conditions and are reflected in the time adjustment, while financing terms and taxes are addressed after the time alignment.

Time adjustments are done first because market conditions change over time and directly drive price levels. By bringing every comparable up or down to the subject property's date, you remove the effect of market movement so you can compare the true differences in value due to physical features, location, or terms. Once the comparables are aligned to the same date, you can adjust for other factors like size, condition, or taxes more accurately. If time weren’t adjusted first, later adjustments could misattribute market movements to other characteristics, leading to an incorrect value. Seasonal patterns are part of market conditions and are reflected in the time adjustment, while financing terms and taxes are addressed after the time alignment.