is one of the four basic categories of adjustments; which are: terms and conditions of sale; date of sale; locational factors; and physical factors.

Locational factors permit adjustments for differences associated with advantages or disadvantages in location between the subject and comparables. Locational factors include physical, social, economic, and political differences that influence the prices paid for real estate.

Example: A subject is located at the entrance to the subdivision off a busy street. Comparables are all located within the same subdivision. The appraiser analyzes any affect from the subject property location against the comparable locations and makes appropriate adjustments for any difference in value.