A comparable is superior in condition and inferior in GLA relative to the subject. Its adjustments will:
Correct Answer
A) Run in opposite directions — one negative, one positive
Why this is correct: Each adjustment is made separately: a negative adjustment for superior condition (subtract from comparable's price) and a positive adjustment for inferior GLA (add to comparable's price). They run in opposite directions. Why the other choices are wrong: Both be negative, since the comparable sold for a higher price is incorrect; adjustments correct differences, not just price. Cancel out, so neither line needs to be entered in the grid is wrong; each must be shown. Be combined into a single net entry to simplify the presentation hides the analysis. Exam tip: Keep adjustments separate; netting obscures your reasoning.
Why This Is the Correct Answer
Superior condition means the comparable's price includes value the subject does not have, so that adjustment is negative. Inferior GLA means the comparable lacks something the subject has, so that adjustment is positive. The two adjustments therefore point in opposite directions, exactly as option A states. Each is derived and entered separately even though their net effect may be small.
Why the Other Options Are Wrong
Option B: Both be negative, since the comparable sold for a higher price
The direction of an adjustment is determined by how the comparable differs from the subject on that specific element, not by the comparable's overall sale price. Being inferior in GLA requires a positive adjustment regardless of what the sale price was. This option mistakes a global price comparison for the line-by-line analysis the grid requires.
Option C: Cancel out, so neither line needs to be entered in the grid
Even when two adjustments happen to offset, both lines must be entered so the analysis is visible and the gross adjustment total is accurate. Omitting them understates gross adjustments and can make a poorly matched comparable look well matched. The offsetting is also rarely exact, so dropping both lines usually introduces error as well as opacity.
Option D: Be combined into a single net entry to simplify the presentation
Netting adjustments into a single entry conceals which elements drove the correction and prevents a reviewer from testing any individual judgment. It also destroys the gross adjustment percentage, which is one of the standard quality checks on a comparable. Simplifying the presentation is not a legitimate reason to reduce the disclosure the grid exists to provide.
Line by Line, Sign by Sign
Every element gets its own line, and every line gets its own sign. Condition and size are independent questions, so answer each one separately with CBS and CIA: Comparable Better, Subtract; Comparable Inferior, Add. Opposite signs on one comparable are ordinary, not a contradiction.
How to use: When a stem describes a comparable as superior in one respect and inferior in another, expect opposite signs and pick the option that says so. Then reject anything suggesting the lines cancel, merge, or disappear, since presentation questions always favor full disclosure.
Exam Tip
Never let two adjustments cancel each other out of the grid; the exam and real-world reviewers both treat that as concealment rather than simplification.
Common Mistakes to Avoid
- -Setting adjustment signs from the comparable's overall price instead of from each element of comparison
- -Dropping offsetting lines from the grid, which understates gross adjustments and hides the analysis
- -Reporting a single combined net adjustment that a reviewer cannot decompose or test
Concept Deep Dive
Analysis
This question tests both adjustment direction and adjustment presentation. Direction follows the standard rule applied line by line: the comparable is superior in condition, so that line is negative, and the comparable is inferior in gross living area, so that line is positive. The two therefore run in opposite directions on the same comparable, which is completely normal and in no way a problem. Presentation matters just as much, because the adjustment grid is the appraiser's disclosure of reasoning. Each element of comparison must appear on its own line with its own supported amount, so that a client or reviewer can see the individual judgments rather than a single opaque figure. Combining or omitting lines because they partly offset destroys that transparency and also hides the gross adjustment total that reviewers use to judge comparability.
Background Knowledge
You need the direction rule for adjustments (comparable superior means subtract, comparable inferior means add), the fact that adjustments are made element by element to the comparable, and the reporting expectation that each element of comparison appears separately in the grid. You should also know why gross adjustment totals matter to reviewers and how netting would distort them.
Real-World Application
An appraiser uses a recently renovated comparable that is 200 square feet smaller than the subject. The grid shows a negative $12,000 condition adjustment derived from renovation cost studies and a positive $9,000 GLA adjustment derived from paired sales, both displayed separately so the reader can evaluate each derivation.
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