Appraisal Fundamentals
Market Conditions and Time Adjustments
When market conditions shift between a comparable's sale date and the effective date of value, appraisers adjust for it — here's how.
Real estate markets move, and a comparable sale that closed six months ago may no longer reflect today's prices exactly — even if the property itself was a near-perfect match. That's what market conditions (time) adjustments are for.
How Time Adjustments Work
Rising Markets
In a market where prices are climbing, an older comparable sale may need a positive time adjustment to reflect appreciation between its sale date and the effective date of value.
Cooling or Declining Markets
In a softening market, a comparable sale from several months earlier may need a downward time adjustment to reflect where prices have actually moved since then.
How It's Derived
Appraisers analyze paired sales or resales over time in the same market area to measure the actual rate of change, rather than assuming a flat percentage.
Why This Matters More in Some Markets Than Others
In a stable market with little price movement, time adjustments may be small or unnecessary. In a market with rapid appreciation or a sudden shift, ignoring the passage of time between a comparable's sale date and the effective date can meaningfully skew the analysis — which is why appraisers specifically test for this rather than assuming it away.
What This Does Not Mean
It doesn't mean every older comparable needs an adjustment, and it isn't based on a generic "home values go up X% a year" assumption — it's derived from actual resale or paired-sales evidence in that specific market area, applied only when the data supports it.
Frequently Asked Questions
Provided for general educational purposes based on standard appraisal market-conditions adjustment methodology. Last reviewed: August 2026.