Which of the following best describes when adjustments are applied in the sales comparison approach?

• A. To reflect differences in market rents
• B. To adjust for financing terms
• C. To adjust for the time of sale date
• D. To reflect differences in features such as size, condition, and location

Answer: (D)

In the sales comparison approach, adjustments are used to make each comparable resemble the subject as closely as possible by compensating for differences in their features. This means adjusting the sale price of each comparable to reflect how its size, condition, or locational factors compare to the subject. By focusing on these physical and locational characteristics, you isolate the impact of each feature on value and derive an adjusted price that represents what the subject would likely sell for if it shared those characteristics. Financing terms or the sale date can be adjusted for too, but the core purpose is to reflect differences in features such as size, condition, and location, which is why this choice best describes when adjustments are applied.