4.4.2.2. Adjustments.Depending on the property involved and the relevant market, the appraiser may need to adjust each comparable sale through quantitative and/or qualitative analysis to derive an indication of the market value of the subject property. Adjustments are made “up or down, depending upon such factors as time of sale, size of parcel, location, topography, and other such variables.”447 Quantitative adjustment, qualitative analysis, or both may be appropriate depending on the specific facts of the valuation problem.448 

Quantitative adjustment is appropriate when there are adequate market data to reliably quantify the effect of a sale characteristic in terms of a percentage or dollar amount: 

For example, if the comparable sale occurred one year before the taking of the subject property and during a period of rising prices, the appraiser will adjust upward, that is, he will derive a value (either on a per-acre or per-parcel basis) for the comparable. This will be adjusted in accord with the percent by which sales of that kind of property increased over the period of time between the two relevant dates.449 

Some characteristics may require quantitative rather than qualitative adjustment, such as market conditions (time) as described above, or expenditures made immediately after purchase.450 But quantitative adjustment is not appropriate for characteristics for which reliable numerical adjustments cannot be derived from market data.451 Indeed, without adequate market support, the apparent precision of quantitative adjustments would convey a false sense of accuracy.452 

Qualitative adjustment may also be appropriate—and necessary—where market data does not support a quantitative adjustment. As another court recognized: 

[The appraiser’s] decision to make qualitative rather than quantitative adjustments to his identified comparable sales . . . is reasonable in light of the multiple factors involved in each of the sales and the complex market in which the subject tracts are located. Further, . . . [the appraiser] initially attempted to use a quantitative approach to appraise one of the [tracts] but found that method to be problematic . . . . While [qualitative analysis] is not without flaws, it appears to this Court that it is the superior approach, especially considering the . . . market and . . . the parcels at issue.453 

Qualitative analysis can be particularly useful in evaluating considerations such as development restrictions, particular land use restrictions, allowable density, the presence of environmental lands, and the impact of easements or encumbrances.454