What does the term "automatic adjustment" imply in the context of appraisals?

In the context of appraisals, the term "automatic adjustment" refers to adjustments that are made without the necessary justification and analysis that are essential for accurate property valuation. Such adjustments might not consider the specific characteristics of the subject property or the market conditions, which can lead to arbitrary and unsupported changes in value.

The correct understanding of automatic adjustments highlights the importance of maintaining rigor in appraisal practices. Proper appraisal methods rely on a structured approach whereby data is carefully analyzed, and adjustments are made based on comparable sales or other applicable evidence. This ensures that the adjustments are not merely subjective or arbitrary but are grounded in market dynamics and objective data.

In contrast, adjustments that are calculated with validated methods rely on established protocols and consistently analyzed information, ensuring that the appraiser's conclusions are credible and supportable. Automatic adjustments do not apply uniformly across all property types; rather, each property may have unique characteristics that warrant individual consideration.