Which term best describes the adjustment of values based on location and condition of a property?

The term that best describes the adjustment of values based on the location and condition of a property is adjustment. In appraisal practice, an adjustment refers to the modifications made to the value of a property in order to account for various factors, including its location and condition. This process is vital for arriving at a fair market value, as properties can differ significantly due to their surroundings and the state in which they are maintained.

Location plays a crucial role in real estate valuation, as it often dictates desirability and market demand. Similarly, the condition of the property—how well it has been maintained and any improvements that have been made—also impacts its value. Adjustments take these variables into consideration, allowing appraisers to better compare properties and derive a more accurate valuation.

Understanding how to make these adjustments is key for assessors and appraisers, which is why it is a fundamental aspect of the appraisal process. In contrast, depreciation and appreciation refer to the decrease and increase in property value over time, respectively, while normalization is a term that typically pertains to making data comparable rather than adjusting values directly based on property specifics like location and condition.