Which adjustments account for differences in physical characteristics such as square footage?

The adjustments that account for differences in physical characteristics, such as square footage, are indeed referred to as physical characteristics adjustments. These adjustments are essential in real estate appraisals and comparative market analyses because they help establish a fair value by taking into consideration the variances in the properties being compared.

When assessing properties, appraisers look at several physical characteristics, including the size of the home, the number of bedrooms and bathrooms, the quality of construction, and other tangible features. If one property has more square footage than another, physical characteristics adjustments will be applied to balance out this difference in size to ensure that the market value reflects the unique aspects of each property accurately.

The other options refer to different types of adjustments and do not pertain to physical characteristics. Time adjustments consider changes in the market over time, location adjustments focus on the geographical area and its impact on property value, and market adjustments generally assess variations based on broader market trends rather than specific physical traits of the properties.