A comparable has signed adjustments of +$12,000, −$5,000, +$3,000 and −$2,000. What signed net adjustment results?
Correct Answer
A) $8,000
12000 − 5000 + 3000 − 2000 = +8000. Common errors: reporting the gross adjustment instead of the net gives $22,000; leaving out the −$2,000 adjustment gives $10,000; treating the −$5,000 as positive gives $18,000.
Why This Is the Correct Answer
Option A is correct because the net adjustment is the signed sum of all adjustments: +$12,000 − $5,000 + $3,000 − $2,000 = +$8,000. The positive and negative adjustments partly offset each other. The result shows the comparable's price moves up by $8,000 overall.
Why the Other Options Are Wrong
Option B: $10,000
Option B, $10,000, leaves out the −$2,000 adjustment: $12,000 − $5,000 + $3,000. Including all four adjustments gives +$8,000.
Option C: $18,000
Option C, $18,000, treats the −$5,000 as positive: $12,000 + $5,000 + $3,000 − $2,000. Keeping its negative sign gives +$8,000.
Option D: $22,000
Option D, $22,000, is the gross adjustment: $12,000 + $5,000 + $3,000 + $2,000. The question asks for the signed net, which is +$8,000.
Keep every sign
For net, carry each adjustment's plus or minus sign into the sum.
How to use: Use this when totaling the adjustment column for a comparable.
Exam Tip
Check that you included every adjustment and kept each sign; distractors often drop one or flip one.
Common Mistakes to Avoid
- -Reporting the gross adjustment as the net
- -Dropping one adjustment from the sum
- -Flipping a negative adjustment to positive
Concept Deep Dive
Analysis
This question tests calculating a signed net adjustment. Each adjustment keeps its sign, and they are summed. $12,000 − $5,000 + $3,000 − $2,000 = +$8,000.
Background Knowledge
The sales comparison grid reports a net adjustment total, which is the signed sum of all adjustments to a comparable. The gross adjustment adds the absolute values instead. The net total is added to the sale price to reach the adjusted sale price.
Real-World Application
An appraiser enters four adjustments on a comparable: +$12,000 for size, −$5,000 for condition, +$3,000 for a patio and −$2,000 for location. The net adjustment is +$8,000. The gross adjustment, $22,000, is reported separately.
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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?
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Sale A sold for $240,000 with 1,500 square feet, and Sale B sold for $375,000 with 2,500 square feet. Using the equal-weighted mean of their overall price-per-square-foot rates, what value is indicated for a 2,000-square-foot subject?