A comparable sold two months ago in a flat market. It matches the subject in bedroom count, bathroom count and age, but has a fireplace the subject lacks, supported at $3,500. What adjustments does the grid require?
Correct Answer
B) A fireplace adjustment of -$3,500, and nothing else
Why this is correct: one measured difference exists and the comparable is superior in it, so one adjustment is made. Why the other choices are wrong: +$3,500 credits the comparable for a feature the subject does not have; a market conditions adjustment in a flat market is an adjustment of zero and adding one implies movement the stem rules out; and matching on two elements does not excuse the third, which is the element that differs.
Why This Is the Correct Answer
Why this is correct: one measured difference exists and the comparable is superior in it, so one adjustment is made. Why the other choices are wrong: +$3,500 credits the comparable for a feature the subject does not have; a market conditions adjustment in a flat market is an adjustment of zero and adding one implies movement the stem rules out; and matching on two elements does not excuse the third, which is the element that differs.
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Previous Question
An appraiser is valuing a property where the cost approach indicates $520,000, the sales comparison approach indicates $485,000, and the income approach indicates $510,000. Given that this is an owner-occupied single-family residence in an active market with good comparable sales, which approach should receive the most weight?
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A comparable sold two years ago for $400,000. Market conditions have appreciated at 3% per year, compounded annually. What is the time-adjusted sale price?