Why are adjustments important in the appraisal process?

Adjustments play a crucial role in the appraisal process because they help to accurately reflect the differences between the subject property and comparable properties. When appraisers evaluate a property's value, they rely on comparable sales to establish a baseline for what similar properties are selling for in the market. However, no two properties are identical; they can differ in size, location, amenities, condition, and various other factors.

By making adjustments, appraisers account for these differences to arrive at a more accurate value for the subject property. For instance, if a comparable property has an extra bedroom or a more desirable location, adjustments would need to be made to either increase or decrease the value of that comparable property to match the characteristics of the subject property more closely. These adjustments ensure that the final appraisal reflects what the property is worth based on the current market conditions, taking into consideration various unique attributes of the properties involved.

The other options do not encapsulate the primary purpose of adjustments in the appraisal process. For instance, increasing the total sales price or ensuring that every property has the same value does not reflect the nuanced process of evaluating distinct properties. Moreover, only accounting for physical defects ignores other significant differences that could impact a property's market value.