What type of adjustment does an appraiser make when accounting for a 5% change in market value due to average property depreciation?

In the context of real estate appraisal, when an appraiser is tasked with adjusting property values due to factors such as depreciation, a percentage adjustment is appropriate. This method specifically accounts for changes in the market value in terms of percentage, making it particularly useful in cases of overall market trends, including depreciation.

Using a percentage adjustment allows the appraiser to reflect the relative change in value accurately. In this scenario, since the property is experiencing a 5% decrease in market value due to average depreciation, applying a percentage adjustment indicates that the appraiser recognizes the change as a fraction of the original value. This methodology not only provides a clear understanding of how much value has been lost but also facilitates comparisons between properties with varying original values.

The other types of adjustments, such as dollar adjustments, would provide a specific monetary figure without directly reflecting the proportional impact on value relative to the property's worth. Gross adjustments typically encompass a broader set of modifications, which may include multiple factors and are not limited to a singular percentage, while net adjustments are typically derived after all adjustments have been considered and netted out, rather than addressing the initial cause of depreciation directly. Therefore, the percentage adjustment is the most fitting choice for addressing the specific effect of depreciation on market value in this context