Definition
Condition adjustments account for property condition differences. A comparable needing roof replacement gets adjusted down; a property with new systems gets adjusted up. Condition is often the largest adjustment in valuations.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Condition adjustments reflect the value impact of differences in property quality and maintenance. A property in excellent condition with recent updates commands higher value than one requiring repairs or showing deferred maintenance. Condition adjustments can be significant—major repairs like roof replacement, HVAC systems, or foundation work can justify substantial adjustments. These adjustments require careful analysis of actual repair costs and their impact on value.
Pro Tip
Major maintenance issues (roof, HVAC, foundation) command significant price reductions. Address these before selling rather than accepting price cuts.
Example
A comparable home sold for $425,000 but has a roof that needs replacement (estimated $12,000 cost). The subject property has a new roof. A positive adjustment of $10,000 is made to the comparable sale price for this condition difference.