What does the term 'Net Adjustment' refer to in real estate valuation?

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The term 'Net Adjustment' in real estate valuation specifically refers to the net sum of positive and negative adjustments that are made during the valuation process. These adjustments account for various factors that can affect the value of a property, such as differences in amenities, location, or condition when comparing similar properties.

In a comparative market analysis, if one property has features that enhance its value (such as a swimming pool or a larger lot), those positive adjustments will increase the perceived value of that property. Conversely, if another property has a negative aspect (like being situated on a busy street), that aspect will lead to a negative adjustment.

The net adjustment is essential because it allows appraisers or other real estate professionals to arrive at a more accurate value by balancing out these influences, providing a clearer picture of a property's market value relative to similar properties. Therefore, understanding and calculating net adjustments is crucial for making informed decisions in real estate transactions.

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