Combined positive and negative appraisal adjustments after they offset each other on a comparable sale.
Net adjustment is the combined effect of positive and negative appraisal adjustments after they offset each other on a comparable sale.
Net adjustment matters because it helps readers see the direction of an appraiser’s interpretation. A comp might have several upward and downward adjustments, but the net adjustment shows the overall movement from the original sale price to the Adjusted Sale Price.
It also matters because a small net adjustment does not always mean the comp was nearly identical. Large positive and negative changes can cancel each other out. That is why reviewers often consider both net and gross adjustment patterns.
Borrowers may see net adjustment language in an Appraisal Report or during Appraisal Review.
The term becomes practical when a low or disputed value turns on whether the chosen comps were too different from the subject property or whether the adjustment pattern still supports the conclusion.
| Adjustment measure | What it shows |
|---|---|
| Net adjustment | Overall direction after plus and minus adjustments offset |
| Gross Adjustment | Total amount of adjustment activity before offsetting |
| Adjusted Sale Price | Comp’s value indication after adjustments are applied |
A comparable sale receives a $15,000 upward adjustment for smaller living area and a $10,000 downward adjustment for better condition. The net adjustment is a $5,000 upward movement, even though the gross adjustment activity was larger.
Net adjustment differs from Gross Adjustment because net adjustment shows the offset result, while gross adjustment shows total adjustment activity.
It differs from Appraisal Adjustment because an appraisal adjustment is an individual change, while net adjustment summarizes all changes on a comparable sale after offsetting.
It also differs from Adjusted Sale Price because net adjustment is the adjustment total, while adjusted sale price is the resulting price indication.