A comparable is in superior condition. The subject has deferred maintenance with a cost to cure of $7,500. What adjustment applies to the comparable?
Correct Answer
D) -$7,500
Why this is correct: the comparable is superior by the amount it would cost to bring the subject to the same condition, so that amount comes off the comparable. Calculation: -$7,500. Why the other choices are wrong: +$7,500 rewards the comparable for being in better shape; -$15,000 doubles the measured cost; and cost to cure is precisely how condition is expressed in dollars, which is why it was measured.
Why This Is the Correct Answer
Why this is correct: the comparable is superior by the amount it would cost to bring the subject to the same condition, so that amount comes off the comparable. Calculation: -$7,500. Why the other choices are wrong: +$7,500 rewards the comparable for being in better shape; -$15,000 doubles the measured cost; and cost to cure is precisely how condition is expressed in dollars, which is why it was measured.
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