In the sales comparison approach, adjustments are made to what in order to make it comparable to the subject property?

In the sales comparison approach, the purpose of making adjustments is to align the features and circumstances of the comparable property with those of the subject property. By doing this, appraisers ensure that the comparison reflects a true value relationship. This is done because the subject property is the one being appraised, and it is essential to determine its value by comparing it effectively to similar properties that have recently sold in the same market.

When adjustments are applied to the comparable property, they account for differences in various characteristics, such as location, size, condition, and amenities, among others. By adjusting the comparable property's sale price based on these factors, the appraiser can derive a more accurate value for the subject property, ensuring that the final appraisal reflects what the market would likely pay for the subject in similar conditions.

Understanding this concept is crucial, as it highlights the relationship between the subject and comparable properties in real estate valuation, showcasing how adjustments influence the opinion of value derived through this method.