How is the adjusted sales price of a comparable property determined?

The adjusted sales price of a comparable property is determined by estimating appropriate characteristics that affect the value of the property being appraised. This process involves comparing the subject property to similar properties that have recently sold in the market. Adjustments are made to the sale prices of these comparable properties based on differences in key characteristics, such as size, condition, age, and features like swimming pools or garages.

For instance, if the comparable property has an extra bedroom or a more updated kitchen, adjustments will be made to account for these differences when determining the adjusted sales price. This creates a more accurate representation of the market value of the subject property, allowing the appraiser to arrive at a price that reflects its true market conditions.

While factors like location are certainly important in appraisal, simply considering location alone would not provide a complete picture; adjustments need to be made for various characteristics. Current listings and asking prices may reflect the seller's expectations rather than the actual market value, hence they are less reliable for determining adjusted sales prices. Overall, carefully estimating characteristics ensures a more precise valuation in the appraisal process.