How is the gross adjustment percentage calculated in the sales comparison approach?

In the sales comparison approach, the gross adjustment percentage is calculated by dividing the total dollar adjustments made to the sale price of a comparable property by that comparable's sale price. This method provides a sense of the extent of adjustments made in relation to the original sale price, allowing appraisers to assess the reliability and relevance of the comparable property in relation to the subject property being appraised.

For example, if a comparable property sold for $300,000 and required a total adjustment of $30,000, the gross adjustment percentage would be calculated as $30,000 divided by $300,000, resulting in a gross adjustment percentage of 10%. This percentage is crucial for understanding how much the comparable property deviates from market conditions or the subject property, guiding appraisers in making informed valuation decisions.

Other methods mentioned would either yield irrelevant figures or not appropriately represent the relationship between the adjusted values and sale price, making option C the only valid approach in determining the gross adjustment percentage.