In sales comparison, which properties are adjusted?

The concept of sales comparison in property valuation involves analyzing the sale prices of similar properties, known as comparables, to estimate the value of the subject property. In this process, adjustments are made to the comparable sales to reflect differences between those properties and the subject property. By adjusting the comparable sales, appraisers can account for factors such as size, condition, location, age, and features that may impact the value.

When adjustments are applied to the comparables, it allows for a more accurate and fair assessment of the subject property's value based on the market activity of similar properties. This practice is essential to ensure that the valuation reflects true market conditions rather than relying solely on the sale prices of the comparables without considering their differences.

In contrast, the subject property itself remains unchanged throughout this comparison process, as the goal is to assess its value in relation to the market represented by the comparables. Adjusting only select categories or properties, such as the oldest ones or random properties in the area, does not account for the systematic and thorough methodology necessary in the sales comparison approach.