If a physical difference exists between the subject and a comparable property, what is the correct statement about the necessity of an adjustment?

• A. Always adjust.
• B. Never adjust.
• C. Adjustment is optional and depends on the difference.
• D. Differences should be ignored.

Answer: (C)

Adjustments are used to reflect how differences between the subject and a comparable affect value in the market. But you don’t adjust for every physical difference automatically—the need for an adjustment depends on whether the market would value that difference. If there is a meaningful, market-supported impact on value, you quantify and apply an adjustment; if the difference is minor or not valued by buyers in that market, you may skip adjusting. For example, a larger garage or newer kitchen might warrant an adjustment if buyers in the area treat it as valuable and you have data to support how much it adds or subtracts from price. If the market doesn’t value the difference, no adjustment is necessary.