What do appraisers adjust during the sales comparison approach?

During the sales comparison approach, appraisers adjust the prices of comparable properties based on differences between those properties and the subject property being appraised. This method relies on comparing the subject property to similar properties that have recently sold in the same market area.

Adjustments are made for various characteristics that can affect property value, such as square footage, number of bedrooms and bathrooms, lot size, location, and amenities. By accounting for these differences, appraisers ensure that the value estimate for the subject property reflects the current market conditions and the value of similar properties.

This approach is fundamental in real estate appraisal because it provides a direct market-based valuation, showing how much buyers are willing to pay for similar properties. Other options, such as interest rates or property taxes, do not pertain directly to the adjustments made in the sales comparison approach.