What is a typical adjustment made in the sales comparison approach?

In the sales comparison approach, adjustments are typically made for differences in size, location, amenities, and condition. This method is fundamentally based on comparing the subject property to similar properties that have recently sold, known as comparables or "comps."

When assessing these comparables, appraisers identify various factors that could influence the value of the properties being compared. For instance, if the subject property has a larger square footage compared to a comparable property, an upward adjustment may be made to account for the additional space. Similarly, if a comparable property is located in a less desirable area or has fewer amenities, a downward adjustment will likely be applied to reflect those differences.

These adjustments are crucial for establishing a more accurate estimate of market value since they help account for the unique characteristics of each property that could affect buyer perception and willingness to pay.

The other options, while they may include factors that influence property value, do not encompass the typical adjustments made in this specific approach as comprehensively as the correct choice does.