Property adjustments in real estate appraisal account for which of the following?

In real estate appraisal, property adjustments are made to account for various factors that can affect the value of a property. The correct answer highlights the importance of locational, physical, and economic differences, which are critical for determining the true market value of a property.

Locational differences refer to the geographic position of the property, including its proximity to amenities, schools, public transportation, and employment centers. These aspects significantly influence buyer preferences and, consequently, property values.

Physical differences encompass the tangible features of the property, such as its size, layout, condition, and any unique attributes or deficiencies. For example, a well-maintained property with modern updates may command a higher price than one that requires extensive repairs.

Economic differences cover the broader economic environment surrounding the property, including local economic conditions, the job market, and overall demand for housing in the area. These factors work together to create a comprehensive understanding of how different properties are valued in relation to each other.

Understanding these adjustments helps appraisers accurately assess a property's worth, ensuring that the final appraisal reflects all relevant factors that can influence its market value. This careful consideration ultimately supports fair transactions and informed decision-making in real estate.