top of page


Adjustments are an important part of real estate appraisals used to determine the value of a property. An appraisal is an unbiased estimate of a property's worth from someone with a professional background in appraising, such as an appraiser or real estate agent. Adjustments are used to bring comparable properties closer to the individual property being appraised. To evaluate a property correctly, appraisers must make adjustments to account for conditions that differ between similar properties in the appraisal and the current value of the subject property. These conditions can encompass a wide range of details ranging from the number of bathrooms to whether or not the property has a pool. The details are important to ensure a meaningful and accurate comparison of the property to that of similar, nearby properties.

When adjusting the sale price of a comparable property, certain factors must be considered to ensure that it accurately reflects the appraised property. These factors can be based on the property's size, the building's condition, the features of the property, or its location. For example, the adjustment could account for the increased size of the appraised property, a recently renovated kitchen in the comparable property, or the extra storage space in the appraised property. Additionally, even an appraisal can be adjusted due to characteristics of the surrounding neighborhood, such as the school district, nearby transportation hubs, or available amenities. Therefore, it is important to consider all of these factors when adjusting the comparable property's sale price, ensuring an accurate representation of the appraised property's worth.

Adjustments are typically made based on objective criteria such as square footage, number of bedrooms and bathrooms, location, and property condition. The goal is to ensure that the comparable properties used to determine the sales price are truly comparable and that any differences in value are accounted for through adjustments. One of the key benefits of adjustment is that it helps ensure fairness and accuracy in property valuations. In addition, by accounting for differences between properties, adjustments help to eliminate biases that might otherwise skew the valuation process. This is particularly important in real estate transactions where large sums of money may be at stake.

Adjustments might be applied as a dollar amount added or deducted from the comparable property's value. They will either bring up or bring down the final value of the subject property. For example, if a similar property has an extra bathroom, the appraiser may give it a positive rating during the adjustment and add $10,000 to the value of the comparable property. On the other hand, if the subject property has a small, outdated kitchen, the appraiser may give it a negative rating with a deduction of $5,000 from the value of the comparable property. 

Adjustments can be difficult to grasp, as they are applied on a case-by-case basis and rely on a deep knowledge of the area in question. However, they are a crucial part of the appraising process and help ensure fair and accurate appraisals for sellers and buyers alike. For instance, if a property has an additional bedroom compared to the comparable property, its sales price would be adjusted upwards to reflect this feature. Similarly, if a property lacks a particular attribute, such as a garage, its sales price would be adjusted downwards. In conclusion, adjustment is an essential component of property valuation that ensures that sales prices are fair, accurate, and based on objective criteria. Therefore, as a real estate agent or broker, it is important to understand how adjustments work and apply them correctly when determining a property's sales price.

bottom of page