When adjusting for differences between the comparable and subject properties, which type of adjustments should an appraiser make last?

In the context of property appraisal, making adjustments is essential to reconcile differences between the subject property and comparable properties. The sequence in which these adjustments are applied is significant to ensure a logical and methodical assessment.

Dollar adjustments are typically made last because they are specific and granular, allowing an appraiser to finalize their adjustments after evaluating more general factors. At first, an appraiser usually determines gross adjustments to understand the overall impact of the differences in attributes between properties. This includes examining the sum of all adjustments without considering whether they are positive or negative.

Next, net adjustments are calculated to provide a clearer view of how much the adjustments are affecting the comparable's value after considering both increases and decreases in value.

Once the gross and net adjustments set the stage for understanding the adjustments holistically, the appraiser can then proceed with precise dollar adjustments. These adjustments reflect the specific monetary values attributed to each discrepancy, allowing for a final, detailed refinement of the data used to arrive at a fair market value.

This structured approach ensures greater accuracy and reliability in the final appraisal results. It positions dollar adjustments as the final, detailed phase of adjustment, thereby enabling appraisers to construct a defensible valuation for the property in question.