What are gross adjustments in real estate?

Gross adjustments in real estate refer to the total dollar value added or subtracted from sale price comparisons. This concept is particularly relevant in comparative market analysis, where adjustments are made to the sale prices of comparable properties to account for differences in attributes, such as size, location, condition, or features. By calculating gross adjustments, a more accurate assessment of a property's value can be established based on how it compares to similar properties that have sold.

For example, if one property has a larger yard than another, the difference in value must be quantified, resulting in a gross adjustment when analyzing comparable sales. This helps agents and buyers alike to understand how much various features can affect a property’s market price.

The other choices do not accurately capture the specifics of gross adjustments. The total cost of home improvements pertains to individual property investments and is not related to comparative analyses. Similarly, average cost adjustments in tax assessments and fees associated with home inspections focus on different aspects of real estate financials that do not involve the concept of adding or subtracting values for comparing sale prices.