A sale between family members in the sales comparison approach would require what type of adjustment?

In the sales comparison approach, adjustments are necessary to ensure the evaluated property is compared fairly to similar properties that have recently sold. When a sale occurs between family members, it often does not reflect the true market value due to non-market influences such as familial relationships, which can lead to discounted sale prices. This situation can lead to a need for adjustments related to the conditions under which the sale occurred.

In this context, the adjustment for "Conditions of Sale" is crucial because it accounts for the unique circumstances of the transaction. Family members may buy or sell a property at prices that do not accurately represent market dynamics; thus, the conditions surrounding the sale must be analyzed to arrive at a more realistic market valuation. This adjustment ensures an accurate comparison with other, more typical sales where the influence of familial relationships does not skew the price.

The other adjustments, while relevant in different contexts, do not directly address the issues created by familial transactions. Financing adjustments pertain to the terms of the financing for the property, market conditions deal with changes over time that affect property values, and property characteristics relate to the physical attributes of the properties being compared.