What is the first step in the Sequence of Adjustments during property appraisal?

The first step in the Sequence of Adjustments during property appraisal is transactional adjustments. This stage involves analyzing the specific transaction conditions and circumstances surrounding the comparable properties being evaluated. Transaction adjustments account for differences in the terms of sale, financing terms, and any conditions that could affect the price—such as whether the sale was motivated by a distressed situation or whether it included personal property.

Understanding and applying transactional adjustments correctly is critical because they lay the groundwork for subsequent adjustments that will be made for physical or market differences. This ensures that the appraiser is accurately reflecting the true market value of the property in question by considering all relevant factors that could influence the pricing of comparable sales.