Tangible differences between the subject and comparable sales are known as what?

• A. Property differences
• B. Economic differences
• C. Adjustment differences
• D. Legal differences

Answer: (A)

Tangible differences are the physical attributes that distinguish the subject from the comparable properties. In the Sales Comparison Approach, you focus on property differences—the measurable, material features like size, age, condition, number of rooms, layout, lot size, and improvements—because these directly affect value and are what you adjust for when estimating a value for the subject. Economic differences refer to market or external factors such as time and location, not the property’s physical characteristics. Adjustment differences isn’t a standard term for this concept, since adjustments are the tool you use to account for the tangible differences identified. Legal differences involve rights, restrictions, or encumbrances, not the physical characteristics of the property.