If there is a physical difference between the subject property and a comparable sale property, what is true about the need for an adjustment?

• A. An adjustment is always required.
• B. No adjustment is ever made.
• C. An adjustment may or may not be necessary.
• D. The difference should be ignored.

Answer: (C)

In this approach, adjustments are used to reflect how the market values differences between the subject and comparables. A physical difference raises the possibility of a value impact, but you don’t automatically adjust every time. If market data show the difference is valued, you apply an adjustment of the appropriate amount. If the market doesn’t reveal a value effect—or if data are insufficient to support a precise adjustment—you may leave it unadjusted. So, whether an adjustment is needed depends on market evidence and the magnitude of the difference; it may be necessary, or it may not be.