In appraisal, what is the term used for an adjustment made for differences between comparable properties?

The correct term for an adjustment made for differences between comparable properties is "Market comparison adjustment." This concept is fundamental in the sales comparison approach to appraisal, where an appraiser analyzes similar properties, known as comparables, to determine the market value of a subject property.

Market comparison adjustments are necessary to account for discrepancies in features such as size, condition, location, and amenities between the subject property and the comparables. This process involves analyzing how these differences impact the market value and applying adjustments accordingly, which helps ensure that the estimated value reflects the most accurate comparison to similar properties that have recently sold.

By using these adjustments, the appraiser can derive a more precise valuation for the subject property, reflecting its true market position relative to comparable sales. This practice is key for achieving reliability in real estate valuation.