What does the acronym "PFGMLP" stand for in the sequence of adjustments?

The acronym "PFGMLP" stands for "Property, Financing, Conditions, Market, Location, Physical." This sequence is important in the adjustment process of property appraisal, as it helps appraisers systematically assess the various factors that can influence a property's value.

• "Property" refers to the intrinsic characteristics of the subject property that need to be analyzed, such as size, age, and type.

• "Financing" adjustments are made to reflect differences in financing terms among comparable properties, as these can significantly impact value.

• "Conditions" cover the circumstances of the sale, such as whether it was a forced sale or a typical market transaction, which may affect the sale price.

• "Market" involves the current market conditions, including supply and demand dynamics, that can influence property values.

• "Location" adjustments consider the desirability of the property's location. This can affect accessibility, neighborhood quality, and nearby amenities.

• "Physical" adjustments relate to the physical attributes of the property, including condition, functionality, and any differences in land or building features.

This structured approach ensures that appraisers account for various elements affecting property value, enhancing the accuracy and reliability of their assessments.