To calculate net adjustments on an appraisal, which sequence is correct?

To calculate net adjustments on an appraisal, which sequence is correct?

• A. Add positives, then subtract negatives, to get net, divide by sales price of the comparable (max of 15% adjustment).
• B. Subtract positives, then add negatives, and multiply by the sales price of the comparable.
• C. Add positives, then subtract negatives, and do not divide by any price.
• D. Subtract negatives, then add positives, and divide by the number of comparables.

Answer: (A)

Net adjustments are calculated by adding all positive adjustments first, then subtracting all negative adjustments to arrive at a net adjustment, which is then expressed as a percentage of the sale price of the comparable. This approach converts the dollar impact of differences into a percent that can be compared across properties, and it aligns with the common 15% maximum guideline for individual adjustments. Multiplying by the price, or dividing by the number of comparables, or omitting division by price would not yield the standard percentage-based net adjustment used in appraisal practice.

Net adjustments are calculated by adding all positive adjustments first, then subtracting all negative adjustments to arrive at a net adjustment, which is then expressed as a percentage of the sale price of the comparable. This approach converts the dollar impact of differences into a percent that can be compared across properties, and it aligns with the common 15% maximum guideline for individual adjustments. Multiplying by the price, or dividing by the number of comparables, or omitting division by price would not yield the standard percentage-based net adjustment used in appraisal practice.