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The principal factors for which adjustments must be <br /> made fall into four basic categories: <br /> 1. Date of sale: An adjustment must be made - <br /> if economic changes occur between the date of <br /> sale of the comparable property and the date <br /> of the appraisal. <br /> 2 . Location: An adjustment may be necessary <br /> to compensate for locational differences. For <br /> example, similar properties might differ in <br /> price from neighborhood to neighborhood, or <br /> even in more desirable locations within the same <br /> neighborhood. <br /> 3. Physical features: Physical features which <br /> may cause adjustments include age, size of <br /> lot, landscaping, type and quality of <br /> construction, number of rooms, square feet of <br /> living space, interior and exterior condition, <br /> presence or absence of a garage, fireplace, air <br /> conditioner, and so forth. <br /> 4 . Terms and conditions of sale: <br /> This consideration becomes important if a sale <br /> is not financed by a present standard financing <br /> procedure. <br /> The market data approach is considered essential in almost <br /> every appraisal of real estate. It is considered the most <br /> reliable of the three approaches in appraising residential <br /> property, where the amenities (the intangible benefits) are <br /> so difficult to measure. <br /> In the mass appraisal process, the Market Data Approach is <br /> continuously employed. Its use begins with initial <br /> development of the schedules of values against current <br /> market transfers until sufficient refinement is achieved and <br /> the schedules are finally adopted. It is then incorporated <br /> into each individual appraisal by use of the schedules <br /> developed. <br />