What is a common practice when adjusting for tangible property differences among comparable properties?

What is a common practice when adjusting for tangible property differences among comparable properties?

• A. Use location, size, and view as adjustments
• B. Use only age and condition
• C. Ignore location
• D. Use only land value differences

Answer: (B)

When comparing properties, adjustments for tangible differences focus on the dwelling itself. The most consistent and impactful adjustments are for the age of the property and its condition, because these factors directly reflect depreciation and how useful the home is in today’s market. Location, view, and other site aspects belong to the site or external factors rather than the tangible property, and adjusting land value alone won’t capture differences in the improvements. So, the common practice is to adjust for age and condition as the primary tangible-property differences.

When comparing properties, adjustments for tangible differences focus on the dwelling itself. The most consistent and impactful adjustments are for the age of the property and its condition, because these factors directly reflect depreciation and how useful the home is in today’s market. Location, view, and other site aspects belong to the site or external factors rather than the tangible property, and adjusting land value alone won’t capture differences in the improvements. So, the common practice is to adjust for age and condition as the primary tangible-property differences.