What does the adjustment process use to value the subject by adjusting the comparable sales based on differences?

• A. Market conditions
• B. Elements of comparison
• C. Physical depreciation
• D. Zoning ordinances

Answer: (B)

Adjustments in the sales comparison approach come from the elements of comparison—the categories used to explain why a comparable’s price differs from the subject. For each difference you identify (such as where the property is located, its physical characteristics, the terms of the sale, or the sale date), you adjust the comparable’s price to reflect what the subject would likely be worth under the same conditions. Market conditions are captured through the date-of-sale adjustment, which is part of these elements. Zoning ordinances aren’t a category used for the adjustment process, and physical depreciation is addressed within the considerations of physical characteristics rather than as a standalone adjustment category.