What type of adjustment would you make for a property with a larger lot size compared to a comparable property?

When evaluating properties for comparative market analysis, adjustments are necessary to account for differences between the subject property and comparable properties. In the case of a property with a larger lot size, a specific adjustment must be made to accurately reflect the value difference.

A lot size adjustment is essential because larger lots typically have a direct influence on the property's value. Buyers often place a higher value on properties with increased outdoor space, which can be particularly desirable for various reasons such as privacy, potential for development, or recreational use. Therefore, adjusting for lot size allows the appraiser or agent to present a more accurate comparison by ensuring that the value attributed to the larger lot is factored into the overall assessment.

This adjustment ensures that the larger lot is appropriately valued against similar properties, allowing for a fair market analysis. By using the lot size adjustment, agents can effectively determine the fair market value of the property, facilitating better decision-making for both buyers and sellers in the real estate market.