A comparable sold for $272,000 with 1,850 square feet and 2 bathrooms. The subject has 1,950 square feet and 2.5 bathrooms. Relevant evidence supports a marginal $68 per square foot for the GLA difference and $4,500 for the extra half bath. What adjusted price results?
Correct Answer
D) $283,300
272000 + (1950 − 1850) × 68 + 4500 = 283300. Common errors: subtracting the half-bath adjustment instead of adding it gives $274,300; leaving out the half-bath adjustment gives $278,800; subtracting the GLA adjustment instead of adding it gives $269,700.
Why This Is the Correct Answer
Option D is correct because the comparable is inferior in both GLA and bathrooms, so both adjustments are added. GLA: (1,950 − 1,850) × $68 = $6,800; half bath: +$4,500. $272,000 + $6,800 + $4,500 = $283,300.
Why the Other Options Are Wrong
Option A: $269,700
Option A, $269,700, comes from subtracting the GLA adjustment instead of adding it: $272,000 − $6,800 + $4,500. The comparable is smaller than the subject, so the $6,800 is added, giving $283,300.
Option B: $274,300
Option B, $274,300, comes from subtracting the half-bath adjustment instead of adding it: $272,000 + $6,800 − $4,500. The comparable lacks the half bath, so the $4,500 is added, giving $283,300.
Option C: $278,800
Option C, $278,800, leaves out the half-bath adjustment: $272,000 + $6,800. Adding the supported $4,500 for the missing half bath gives $283,300.
One line per difference
Treat each difference as its own grid line with its own sign, then add the lines together.
How to use: Use this to avoid dropping or mis-signing an adjustment in multi-step grid problems.
Exam Tip
Set the sign for each feature separately before adding; distractors often flip or omit one adjustment.
Common Mistakes to Avoid
- -Flipping the sign on one of several adjustments
- -Leaving out one feature's adjustment
- -Applying the full price per square foot to a GLA difference
Concept Deep Dive
Analysis
This question tests combining two upward adjustments for an inferior comparable. The comparable has 100 fewer square feet and one less half bath than the subject, so both adjustments are positive. The adjusted price is $272,000 + 100 × $68 + $4,500 = $283,300.
Background Knowledge
Each difference between a comparable and the subject gets its own supported adjustment, and the adjustments are combined to reach an adjusted price. Adjustments are made to the comparable, upward where it is inferior and downward where it is superior. Marginal rates are used for size differences.
Real-World Application
An appraiser compares a 1,950-square-foot subject with 2.5 baths to a 1,850-square-foot comparable with 2 baths. Market data support $68 per square foot for GLA and $4,500 for a half bath. The grid shows +$6,800 and +$4,500, for an adjusted price of $283,300.
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Previous Question
A comparable on 8,000 square feet sold for $310,000; the subject lot has 9,000 square feet. Market analysis specifically supports a marginal $6 per square foot for this area difference, rather than merely an average whole-site land rate. What adjusted price results?
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A comparable sold for $286,000. The subject has 150 more square feet of GLA and 2,000 fewer square feet of lot. Supported marginal rates for these differences are $70 per square foot of GLA and $5 per square foot of lot. What adjusted price results?