What does "comparable sales adjustment" refer to in appraisal?

The term "comparable sales adjustment" specifically refers to modifications made to the sale prices of comparable properties to account for differences between these properties and the subject property being appraised. This process involves analyzing various characteristics such as location, size, condition, and amenities to ensure that the comparison reflects a more accurate market value for the subject property.

When appraisers conduct a comparative market analysis, they identify properties that are similar to the one they are appraising and then make necessary adjustments to the sale prices of these comparables to account for any discrepancies. For example, if the comparable property has a newly remodeled kitchen while the subject does not, the appraiser might adjust the sale price of the comparable downwards to reflect this difference.

This process is essential because it allows appraisers to derive a more precise estimate of value by ensuring that all relevant factors are considered. It ultimately ensures that the appraisal reflects market conditions and the true value of the subject property in relation to similar properties.

The other options do not fully capture this concept: adjusting prices to increase them or imposing a standard rate does not align with the purpose of comparative sales adjustments, which is to achieve a fair market assessment. Similarly, adjusting for an adjustment period for stabilization does not relate directly to the individual