To make valid computations of adjustments for the market comparison approach to value, elements of comparison must be applied in a specific order.

The Question: To make valid computations of adjustments for the market comparison approach to value, elements of comparison must be applied in a specific order. Which of these elements has the highest priority?

Answer: Conditions of sale

The elements appraisers consider in the market comparison approach are applied in a specific order: financing terms and cash equivalency, conditions of sale, market conditions at the time of contract and closing, location, and physical characteristics.

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