Adjustments in the appraisal process are always made to which type of property?

In the appraisal process, adjustments are primarily made to the comparable property rather than the subject property. The subject property is the property being appraised, serving as the focal point of the appraisal. The purpose of an appraisal is to determine the fair market value of the subject property by comparing it to similar properties (comparables) that have recently sold.

When appraisers analyze comparables, they identify differences between these properties and the subject property, such as differences in size, location, condition, or amenities. To arrive at a fair value estimate, appraisers adjust the sale prices of the comparable properties to account for these differences. This means that if a comparable sold for more or less than what would be expected based on its characteristics relative to the subject property, an adjustment is made to that comparable’s price to reflect its value in context to the subject.

Therefore, the answer indicating that adjustments are made to the comparable property demonstrates an understanding of the appraisal technique that aims to accurately assess the market value of the subject property. The correct approach showcases the basic principle of using comparables to infer a value for a unique property based on similar sales, always modifying the comparables for any variances.