How is the gross adjustment calculated in the sales comparison approach?

In the sales comparison approach, the gross adjustment is calculated by totaling the dollar amounts of the adjustments made to comparable sales. This method involves considering all adjustments necessary to align the comparable properties with the subject property being appraised.

The gross adjustment reflects the total amount of variances that have been identified through comparisons of prices and attributes. Each comparable property is analyzed for differences in features, location, condition, and other relevant factors, and adjustments are made accordingly. The sum of these adjustments provides a comprehensive view of the adjustments needed to ensure a fair comparison, which is crucial for an accurate appraisal.

Other methods mentioned do not provide the full view of the adjustments required. Averaging adjustments might obscure the total impact of differences, focusing solely on the largest adjustment neglects the cumulative effects of all adjustments, and considering only negative amounts would not represent the overall picture needed for valuation. Thus, totaling the dollar amounts of all adjustments is the most accurate way to calculate the gross adjustment in this context.