How is the adjusted sales price calculated for a comparable property using the sales comparison approach?

The adjusted sales price for a comparable property using the sales comparison approach is calculated by making specific adjustments to the sale price of that comparable property to account for differences between it and the subject property being appraised. In this context, the adjustments reflect the features and characteristics that may affect the market value, such as the size of the home, the condition, the location, and other relevant factors.

The correct process involves taking the original sale price of the comparable property and adding or subtracting the total adjustments that have been determined necessary to achieve a value that is more comparable to the subject property. This method ensures that the adjusted sales price accurately reflects what the comparable property would likely sell for if it had characteristics that more closely align with those of the subject property.

The approach allows appraisers to systematically evaluate differences and create a more fair comparison, ultimately leading to a supported estimate of the value for the subject property based on its market position relative to similar properties.