Which item is an element of comparison and part of the order of adjustments?

• A. Location
• B. Property rights conveyed
• C. Market conditions
• D. Physical characteristics

Answer: (B)

When you compare properties for value, you must align the rights that pass with the property. The rights conveyed—such as full ownership (fee simple) versus lesser interests or additional rights like mineral or air rights—directly affect what is being sold and how its value should be interpreted. If a comparable sale includes more rights than the subject property, its price reflects those extra rights, and you must adjust the price to make an apples-to-apples comparison. Conversely, if the subject has more rights, you adjust upward or downward accordingly to reflect the difference.

Because rights conveyed establish what actually transfers with the property, they are addressed early in the adjustment process. Once the rights are aligned, you proceed to adjust for other differences like location, physical characteristics, amenities, and sale terms. This makes property rights conveyed a natural and essential element of comparison that also sits at the front of the adjustment sequence.