What is the Adjusted Sale Price?

With appraisal reports that use the comparative market approach, the adjusted sales price is the net value assigned to comparables after adjusting for differences between the subject property and each comparable.

Real estate appraisers estimate a property’s fair market value by looking at nearby comparables that have closed recently. However, no two properties are exactly alike. At the very least, they occupy separate space.

With each comparable used, the appraiser starts with the official sales price. But the appraiser must then make positive or negative adjustments to the sale prices based on the differences between the comparable and the subject. After all adjustments have been added or subtracted from the official sales price, the appraiser will then arrive at the adjusted sale price.

For example, the appraiser finds an acceptable comparable that recently sold for $210,000. The two differences it has with the subject property are that the comparable has a detached garage worth about $15,000, but the subject property has finished basement worth $25,000. The appraiser will adjust the comparable’s value downward by $15,000 for the garage, but upwards for $25,000. That net positive adjustment of $10,000 arrives at an adjusted sale price of $220,000.

For more information, see also the following entries:

• :Appraisal:
• :Comparable:
• :Comparable Property:
• :Comparative Marketing Approach:
• :Fair Market Value:
• :Finish:
• ersonal Property:
• roperty:
• urchase Price:
• :Real Estate:
• :Real Property: