What adjustment should be made due to the physical condition difference between two properties?

When considering adjustments between properties due to differences in their physical condition, it's important to understand how these adjustments reflect on the valuation of the comparable property relative to the subject property.

If the comparable property is in better physical condition than the subject property, a plus adjustment is made to the comparable. This adjustment accounts for the fact that the comparable is superior in condition, and therefore typically commands a higher price. By adding value to the comparable, you recognize its higher quality, which justifies a higher price as compared to the subject property.

This type of adjustment ensures that the appraisal reflects the true market value by aligning the comparable property's price to match the condition of the subject property. Thus, if the subject property has defects or is less maintained, the values must be aligned accordingly through this adjustment, ensuring that the analysis accurately reflects the market dynamics at play.

Understanding these principles is crucial for real estate professionals, as it allows for more accurate pricing and appraisals, which can significantly affect negotiations and sales outcomes.