Adjustments in the sales comparison approach must be ___________.

• A. Random and arbitrary
• B. Supported and defended
• C. Based on guesswork
• D. The same for every property

Answer: (B)

In the sales comparison approach, every adjustment must be supported by market data and a defendable rationale. Adjustments are the way you translate differences between the subject property and comparable sales into equivalent values, so they should reflect real, evidenced market responses rather than personal opinion. That means using data from recent sales of similar properties, paired sales analyses, and other market indicators to justify the amount of each adjustment.

This is why the best answer is that adjustments are supported and defended. They should be tailored to each property, because features like size, condition, location, and financing terms can impact value differently across properties. They should not be random, guesswork, or the same across all cases, since that would ignore how market demand and property characteristics interact uniquely in each appraisal scenario.