When using the sales comparison approach, appraisers adjust the sale prices of comparables to account for differences with the subject property. This statement is:

• A. True
• B. False
• C. Only for commercial properties
• D. Only when there are no comparable sales

Answer: (B)

In the sales comparison approach, comparables are adjusted to reflect differences between each comparable and the subject property. The idea is to isolate how specific features affect value: size, age, condition, upgrades, lot, location, views, and even timing. For each difference, the appraiser estimates how much value is gained or lost and adjusts the comparable’s price accordingly. By converting each sale price into an equivalent price for the subject’s characteristics, the adjusted prices of several comparables can be weighed to derive a credible estimate of the subject’s value. This approach relies on market-derived adjustments, not arbitrary tweaks, and is used whenever suitable comparables exist.