Final answer:
Percentage adjustments are used to express differences in prices or values, such as in real estate when comparing properties. The percentage adjustment is calculated by comparing the difference in price and expressing it as a percentage of the subject value.
Step-by-step explanation:
Percentage adjustments are generally used to express differences in the prices of goods or values of properties. In real estate, percentage adjustments are commonly used to compare the subject property with comparable properties.
For example, if the subject property has a selling price of $200,000 and a comparable property has a selling price of $250,000, the percentage adjustment would be calculated as follows:
Percentage adjustment = (Comparable price - Subject price) / Subject price x 100%
In this case, the percentage adjustment would be:
(250,000 - 200,000) / 200,000 x 100% = 25%
This means that the comparable property is 25% higher in price compared to the subject property.