Appraisal adjustment for market movement between a comparable sale date and the valuation date.
A time adjustment is an appraisal adjustment for market movement between the date a comparable sale occurred and the effective valuation date of the appraisal.
Time adjustment matters because older sales may not reflect current market conditions. If prices have risen or fallen since a comparable sale closed, the appraiser may need to account for that change before using the sale as valuation evidence.
Borrowers often assume that a sale from several months ago should directly support today’s value. In a changing market, the date of sale can matter almost as much as size, condition, or location. Time adjustment is sometimes described as a market-conditions adjustment because it addresses how the market changed over time.
Borrowers usually see time-adjustment logic in the comparable-sales grid or in the appraisal’s market comments. The term becomes practical when a report relies on older Comparable Sales (Comps) because few recent sales are available.
It can also matter during an Appraisal Review or Reconsideration of Value request if a borrower argues that the report ignored a recent market shift.
| Appraisal question | Why timing matters |
|---|---|
| When did the comp go under contract or close? | The sale date affects how current the evidence is |
| Has the local market moved since then? | Rising or falling prices can change the value indication |
| Are newer sales available? | Recent sales may require less timing interpretation |
| Is the adjustment supported? | The report should make the timing logic understandable |
Time adjustment is not a forecast of future appreciation. It is a way to interpret past sale evidence as of the appraisal’s effective date.
A comparable sale closed six months before the appraisal date. If the local market has moved meaningfully since that sale, the appraiser may adjust the comp so it better reflects current market conditions at the time of valuation.
Time adjustment differs from Location Adjustment because time adjustment addresses market movement between dates, while location adjustment addresses differences in market setting.
It differs from Condition Adjustment because condition focuses on physical quality and repairs, while time focuses on market change.
It also differs from Market Value. Market value is the value concept being supported; time adjustment is one step in interpreting older sales evidence.