When adjusting the sales price of comparable properties, which property is adjusted?

The adjustment of the sales price of comparable properties is a fundamental practice in real estate appraisals and market analysis. In this context, the property that is adjusted is the comparable property being analyzed in relation to the subject property for sale.

The reason for adjusting only the comparable property stems from the need to create a direct comparison between the subject property and the comparable property. This is essential because the subject property is the one being evaluated for its market value based on its specific features, conditions, and location. The comparable properties might differ in various aspects – such as size, location, or amenities – and these differences need to be quantified to arrive at an accurate market value for the subject property.

By making adjustments to the comparable properties, appraisers can account for these differences and arrive at a more accurate and fair price estimate for the subject property based on what similar properties have sold for. The adjustments aim to remove the discrepancies between the subject property and the comparable properties to reflect a more direct comparison, leading to a clearer understanding of the subject property's market position.

In conclusion, the adjustment focuses solely on the comparable property because the goal is to align it with the characteristics of the subject property for a precise price assessment.