How do you adjust comparables to the subject property during the Market Approach?

Adjusting comparables to the subject property during the Market Approach involves a thorough analysis of both physical and economic characteristics. This step is crucial because the goal is to account for differences between the comparables and the subject property, ensuring that the valuation reflects the true market value based on comparable sales.

Physical characteristics include factors such as the size, condition, age, and features of the properties. For instance, if a comparable has more square footage or a newer roof than the subject property, an appraiser would adjust the price of that comparable downward. Similarly, economic characteristics like location, zoning, and market conditions must also be considered. These elements can significantly impact the desirability and value of a property.

By thoroughly analyzing these characteristics, appraisers can make appropriate adjustments to the sale prices of the comparables. This process helps in arriving at a supported value for the subject property that reflects its unique attributes and market conditions, providing a more accurate and fair appraisal outcome.