What is the primary distinction between quantitative and qualitative adjustments in appraising?

The primary distinction between quantitative and qualitative adjustments in appraising lies in the nature of the adjustments themselves. Quantitative adjustments are based on measurable, factual data, such as specific dollar amounts or percentages that can be derived from market analysis. These adjustments are often applied to specific criteria, like differences in size, age, or features of comparable properties, and rely on statistical or numerical methods to determine the value impacts.

In contrast, qualitative adjustments are often subjective and based on non-numeric factors, such as the desirability of a location, the overall condition of a property, or personal preferences. These factors are more difficult to measure precisely and can vary significantly between appraisers based on their experience and judgment.

The clarity of quantitative adjustments being factual underlines their strength in supporting appraisals with hard data, thus enhancing the reliability and credibility of the appraisal process. Understanding this distinction is crucial for appraisers as they navigate the complexities of evaluating properties and making informed adjustments.