refers to adjustments necessary to determine a subject's value when pricing has been affected by favorable (below market) financing terms provided by the seller in a transaction, or the assumption by the buyer of a below market mortgage.

The cash equivalency technique will reveal the maximum impact that the favorable financing may have had on the price paid; it will not necessarily reveal the actual impact on the sales price. It attempts to determine what the actual sale price would have been if the favorable financing or concessions had not been offered.