For which of the following categories of adjustment are you most likely to see a dollar adjustment instead of a percentage adjustment?

Prepare for the Texas Real Estate Appraisal Exam. Test your knowledge with flashcards and multiple choice questions, all with hints and explanations. Pass with confidence!

In the context of real estate appraisal, physical features of a property often necessitate dollar adjustments because these adjustments are typically based on the actual cost to construct or replace specific attributes. Examples of physical features include square footage, number of bedrooms, bathrooms, and the presence of amenities such as a pool or garage. When appraisers make adjustments for these features, they frequently calculate the difference in value using actual dollar amounts that reflect the market's perception of these attributes.

For instance, if one comparable property has a larger garage than the subject property, the appraiser may determine that the added square footage contributes a specific dollar value to the overall property value. This quantifiable nature of physical features lends itself more readily to dollar adjustments rather than percentage adjustments, which are typically more abstract and are often utilized for broader categories like overall property values or price trends.

While other categories such as date of sale, location, or terms and conditions of sale could also involve monetary impacts, they often lend themselves to being expressed as percentages due to their comparative nature—representing trends in market conditions, rather than direct differences in physical attributes of the properties involved. For example, adjustments for terms and conditions of sale might be expressed as a percentage to reflect market shifts rather than fixed amounts, making

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