What do transactional adjustments primarily relate to in real estate appraisals?

Transactional adjustments in real estate appraisals focus on the specifics of the transaction itself, including the nature and terms of the deal. These adjustments are necessary to ensure that the comparables used in the appraisal process align closely with the subject property. For example, if a comparable sale involved seller financing or was part of a bulk purchase, these factors would necessitate an adjustment to understand the true market value of the property being appraised.

The aspects of the deal can significantly impact the sale price—such as the influence of contingencies, financing arrangements, or even the motivation of the buyer or seller. Therefore, understanding and accurately applying these transactional adjustments is crucial for deriving a reliable and valid property value, as it reflects more than just the raw sale numbers, taking into account the unique circumstances surrounding each transaction.