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Misc
April 01, 2019
Adjustments

Word of the day
Adjustments
1. In appraisal, the increases or decreases to the sales price of a comparable property to arrive at an indicated value for the property being appraised. Adjustments may be made for several reasons. The first adjustment is for seller concessions or conditions of sale; then for financing terms. Another is for time of sale if there has been a change in market conditions since the comparable sale. Adjustments are then made for location and dissimilarities between the physical characteristics of the subject and the comparable property. The indicated value is increased or decreased for each difference or dissimilarity.
2. In real estate closings, the credits and debits of a settlement statement, such as real property tax, insurance, and rent prorations.
2. In real estate closings, the credits and debits of a settlement statement, such as real property tax, insurance, and rent prorations.

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Written by
John Reilly
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