What is the primary adjustment made in the Sales Comparison Approach?

In the Sales Comparison Approach, the primary adjustment involves modifying sale prices based on differences in property features. This method relies on comparable sales, where appraisers analyze properties that have recently sold and make adjustments to account for variations in characteristics such as size, location, condition, age, and amenities. These adjustments are essential to ensure that the comparison reflects the true value of the subject property in relation to the comparable properties.

By focusing on property features, the appraiser can more accurately determine how much more or less valuable the subject property is compared to similar properties. For example, if the subject property has a swimming pool and the comparable property does not, the appraiser would add value to the comparable property’s sale price to account for this feature.

While other factors such as weather conditions, market time, and marketing expenses can impact property sales, they are secondary considerations in the adjustment process of the Sales Comparison Approach. The main goal remains to align the sale prices of comparables with the subject property's specific attributes to derive a reliable estimate of value.