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Article: Base adjusting in the sales comparison approach.(property appraisal)
- Article from:
- Appraisal Journal
- Article date:
- March 22, 2004
- Author:
CopyrightCOPYRIGHT 2004 The Appraisal Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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absract
This article demonstrates that the same value indication can be developed in the sales comparison approach by using either dollar or percentage adjustments. However, the dollar adjustments are summed while the equivalent percentages should be multiplied. Each time an independent, market-derived adjustment is made to a sale price, a new base is established. This article demonstrates that the adjustment process in the sales comparison approach is simply the application of base adjusting.
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The sales comparison approach is probably the most commonly used technique for developing an indication of value in the valuation process. ...