Adjustments in the sales comparison approach must be ___________.

Adjustments in the sales comparison approach must be ___________.

• A. Supported and defended
• B. Estimated
• C. Arbitrary
• D. Optional

Answer: (A)

Adjustments in the sales comparison approach must be supported and defended. Each difference between the subject property and a comparable—such as location, physical features, condition, or sale terms—needs a justification tied to market data. The appraiser uses recent comparable sales, paired-sales analyses, or cost data to determine how much value the difference adds or subtracts, and then clearly documents the rationale and the data in the report. This ensures the adjustments reflect actual market reactions and can withstand review. Arbitrary or unsubstantiated tweaks would undermine credibility, and adjustments are not optional; they are necessary whenever there are meaningful differences between the subject and the comps. For example, if a comp lacks a feature the subject has, the adjustment should reflect how the market prices that feature, based on evidence, not a guess.

Adjustments in the sales comparison approach must be supported and defended. Each difference between the subject property and a comparable—such as location, physical features, condition, or sale terms—needs a justification tied to market data. The appraiser uses recent comparable sales, paired-sales analyses, or cost data to determine how much value the difference adds or subtracts, and then clearly documents the rationale and the data in the report. This ensures the adjustments reflect actual market reactions and can withstand review. Arbitrary or unsubstantiated tweaks would undermine credibility, and adjustments are not optional; they are necessary whenever there are meaningful differences between the subject and the comps. For example, if a comp lacks a feature the subject has, the adjustment should reflect how the market prices that feature, based on evidence, not a guess.