In the sales comparison approach, quantitative adjustments are made to the prices of comparable properties to account for measurable differences between them and the subject property. Standard elements of comparison include the age of the transaction (adjusting for market conditions/time), physical characteristics like the land-to-building ratio, and locational differences. These factors have market-derived data supporting specific adjustments.

While safety is a critical consideration that influences value, it is not typically treated as a standalone, primary element for quantitative adjustment. Instead, the financial impact of safety aspects is usually captured within broader, quantifiable adjustments for a property's physical condition (e.g., deferred maintenance, structural integrity) or its location (e.g., neighborhood crime rates, proximity to hazards).

A. The age of each transaction is a fundamental factor used to make quantitative adjustments for changes in market conditions over time.

B. The land-to-building ratio is a key physical characteristic that is quantitatively adjusted to account for differences in utility and value.

C. Location is one of the most critical drivers of value, and differences in absolute and relative location require standard quantitative adjustments.

1. The Appraisal Institute. (2013). The Appraisal of Real Estate (14th ed.). Chicago, IL: Appraisal Institute. In Chapter 19, "Sales Comparison Approach," the text outlines the ten standard elements of comparison applied in valuation. These include "Market conditions" (related to transaction age), "Location," and "Physical characteristics" (which includes factors like land-to-building ratio). "Safety" is not listed as a distinct element of comparison.

2. Hitchner, J. R. (2017). Financial Valuation: Applications and Models (4th ed.). Hoboken, NJ: John Wiley & Sons. Chapter 5, "The Market Approach," discusses the necessity of adjusting comparable data for differences in factors such as size, risk, and growth. The principle is to adjust for specific, quantifiable differences, a framework that does not typically isolate "safety" as a separate quantitative adjustment line item.

3. Pratt, S. P., & Niculita, A. V. (2008). Valuing a Business: The Analysis and Appraisal of Closely Held Companies (5th ed.). McGraw-Hill. The chapters on the market approach (e.g., Chapter 10) detail adjustments to comparable transactions based on factors like time, terms of sale, and non-operating assets. The adjustments are based on quantifiable differences, and qualitative aspects like "safety" are generally reflected in the overall risk profile or condition, not as a separate adjustment.