A $340,000 comparable has one extra bathroom relative to the subject. Market evidence isolates a $6,000 positive contribution for that difference. No other adjustments apply. What adjusted comparable price results?
Correct Answer
B) $334,000
340000-6000=334000. Common errors: adding the bathroom contribution instead of subtracting it gives $346,000; not adjusting the comparable gives $340,000; reporting only the adjustment gives $6,000.
Why This Is the Correct Answer
Option B is correct because the comparable has one extra bathroom with a supported $6,000 contribution. Adjusting the comparable toward the subject gives $340,000 - $6,000 = $334,000.
Why the Other Options Are Wrong
Option A: $6,000
Option A, $6,000, reports only the adjustment amount instead of the adjusted price. The question asks for the adjusted comparable price, which is $340,000 - $6,000 = $334,000.
Option C: $340,000
Option C, $340,000, leaves the comparable unadjusted. A supported $6,000 difference exists, so the adjusted price is $340,000 - $6,000 = $334,000.
Option D: $346,000
Option D, $346,000, adds the bathroom contribution instead of subtracting it: $340,000 + $6,000 = $346,000. The comparable is superior, so the correct result is $340,000 - $6,000 = $334,000.
CBS: Comp Better, Subtract
When the Comparable is Better, Subtract its extra feature's value; when it is inferior, add.
How to use: Use this to choose the sign of a bathroom, garage or other feature adjustment.
Exam Tip
Make sure the answer is an adjusted sale price, not the adjustment itself, when the question asks for the adjusted comparable price.
Common Mistakes to Avoid
- -Adding instead of subtracting for a superior comparable
- -Reporting the adjustment amount as the adjusted price
- -Skipping a supported feature adjustment
Concept Deep Dive
Analysis
This question tests adjustment direction for a comparable with an extra feature. The comparable has one more bathroom than the subject, which the market values at $6,000. Because the comparable is superior, its price is reduced to show what it would have sold for with the subject's bathroom count.
Background Knowledge
Adjustments are applied to the comparable sale to reflect differences from the subject. A comparable superior in a feature is adjusted downward by that feature's market contribution, producing an indication of what it would have sold for if it matched the subject.
Real-World Application
A subject has two bathrooms, and a comparable has three. Paired sales indicate a third bathroom adds about $6,000, so the appraiser enters -$6,000 on the comparable's bathroom line.
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