When applying the sales comparison approach, what should an appraiser adjust based on?

The sales comparison approach involves evaluating the value of a property by comparing it to similar properties that have recently sold in the same area. In this context, adjustments are made to account for differences between the comparable properties and the subject property.

Focusing on adjustments related to size, age, and other physical characteristics is essential because these factors directly influence the market value of real estate. For example, if the subject property is larger than the comparable properties, the appraiser would typically adjust the value upward for the subject property. Similarly, if the subject property is newer or has upgraded features compared to the comparables, adjustments would be made to reflect this enhanced value.

Considering these physical characteristics allows for a more accurate comparison and valuation, leading to a better estimate of the subject property's value. While market trends, economic data, location, and demographic data are also important in the overall appraisal process, they do not specifically pertain to the adjustments made during the sales comparison approach as directly as size, age, and physical attributes do.