Market value adjustments in a comparative market analysis (CMA) are crucial because they account for differences between comparable properties and the subject property. These adjustments are made to reflect the impact of various factors such as property features, condition, location, and market conditions, including inflation. By adjusting the values of comparable properties, real estate professionals can arrive at a more accurate estimate of the subject property's value based on current market trends and characteristics.
The process of adjusting for inflation and specific features allows practitioners to present a realistic picture of what the property is worth in a current market context, helping sellers set competitive prices and buyers assess fair values. This nuanced approach to valuation is essential for making informed decisions in real estate transactions.
The options related to determining final selling price, establishing initial purchase price, and calculating closing costs do not fully encapsulate the purpose of market value adjustments, which is specifically focused on aligning the subject property's market value with comparable sales in an informed manner.