Definition
Size adjustments account for property size differences. Calculated on per-square-foot basis, they adjust comparables for square footage variations. It's among the most common adjustments.
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Size adjustments are among the most common adjustments in property valuation. They account for differences in living area, lot size, and total property square footage. If a comparable property is 200 square feet larger than the subject, an adjustment is made based on the market value of square footage in that area. Size adjustments are typically calculated as price per square foot multiplied by the square footage difference.
Pro Tip
Ensure square footage measurements are accurate. Incorrect measurements lead to incorrect size adjustments.
Example
A comparable home of 2,200 square feet sold for $440,000 ($200 per square foot). The subject property is 2,000 square feet. A size adjustment of -$40,000 is made (200 square feet × $200) to account for the subject's smaller size.