In appraisal, what does adjustment refer to?

In appraisal, the concept of adjustment specifically pertains to the process of modifying the value of comparable properties to account for differences that exist between these comparables and the subject property being appraised. This adjustment process is essential to ensure that the appraiser arrives at a fair and accurate value for the subject property by taking into consideration various factors such as location, size, amenities, and condition that may vary between the subject property and the comparables.

For instance, if the subject property has an extra bathroom compared to a comparable property, the appraiser would adjust the value of that comparable property upward to reflect the additional utility and value brought by the extra bathroom. Conversely, if the comparable property has features that the subject property lacks, such as a finished basement or a larger lot size, the appraiser would adjust the comparable downward. This ensures that the final appraised value reflects a true comparative analysis and is justified by market data.

The other options, while relevant to real estate, do not accurately characterize the term "adjustment" in the appraisal context. Modifications to the physical structure of a property refer to renovations or repairs, while alterations in zoning classifications relate to changes in the legal use of land rather than value assessment. Adjustments in the appraisal process timeline would