What is the process called where dissimilarities are accounted for in comparing a subject property and a comparable property?

The correct response is the process of making adjustments. This involves evaluating and reconciling differences between a subject property and comparable properties in order to arrive at an accurate market value. When appraisers or real estate professionals assess the value of a property, they often compare it to similar properties that have recently sold. However, no two properties are exactly alike; they may differ in significant ways such as location, size, features, and condition.

To ensure an effective comparison, adjustments are made to the sale prices of the comparables to reflect the differences. This means adding or subtracting value based on the specific characteristics of the properties. For example, if a comparable property has an extra bathroom, the price of that property may be adjusted downward when comparing it to a subject property without that feature. This process allows real estate agents and appraisers to establish a more accurate value for the subject property based on current market trends and comparable sales.

Understanding this process is crucial, as it directly impacts property valuation and market assessments. While other terms like market analysis, cost approach, and comparative market analysis capture various aspects of real estate evaluation, "making adjustments" specifically refers to the method of aligning differences between the properties being compared, which is central to deriving an accurate market