What are gross adjustments in real estate appraisal?

Gross adjustments in real estate appraisal refer to the dollar value adjustments made for comparative properties in order to account for differences between the subject property and those that have recently sold. This process is essential in the comparative market analysis, where appraisers assess how various features and conditions can affect the value of a property.

When appraisers establish value, they make adjustments based on characteristics such as square footage, condition, location, and amenities. These adjustments are necessary to ensure that the comparison accurately reflects the worth of the subject property compared to the comparables. The sum of these numeric changes — representing either increases or decreases in valuation based on the features of each comparative property — makes up the gross adjustments.

Understanding this concept is crucial, as it helps determine a property's fair market value by blending real market data with the unique characteristics that differentiate properties.