An adjustment grid that shows the same dollar figure for every difference regardless of magnitude suggests:
Correct Answer
D) A need to check the support, without proving the amounts were guessed
Repeated identical adjustments across unrelated differences warrant investigation of their support. They do not prove fabrication: relevant market evidence can sometimes support equal or rounded amounts. Assess the data and applicability rather than declaring the grid invalid from its numerical pattern alone.
Why This Is the Correct Answer
Option D is correct because repeated identical adjustments across unrelated differences call for checking their support without proving the amounts were guessed. Adjustments must reflect the market's reaction to the differences between properties, so the reviewer should examine the data behind them. Equal or rounded amounts can sometimes be supported by relevant market evidence, so the pattern alone does not establish fabrication.
Why the Other Options Are Wrong
Option A: Proof that the market values all of these features identically
Option A is wrong because a uniform dollar figure does not prove the market values all of these features identically. It is a pattern that needs investigation, and the market-based support must be checked before drawing any conclusion.
Option B: Proof that the equal adjustments are unsupported and must be removed
Option B is wrong because equal adjustments are not proof that they are unsupported and must be removed. Market evidence can sometimes justify equal or rounded amounts, so the support should be examined rather than the adjustments being struck automatically.
Option C: Assurance that no further verification of the grid is needed
Option C is wrong because an unusual pattern of identical adjustments is a reason for more scrutiny, not an assurance that no further verification is needed. Adjustments must reflect the market's reaction, which has to be confirmed.
Same number, check the source
A repeated number is a question, not an answer. Ask where the figure came from before deciding whether it is right or wrong.
How to use: Use this phrase when a review question shows a suspicious adjustment pattern and offers answers ranging from proof to dismissal.
Exam Tip
Prefer answers that call for investigating support over answers that claim a pattern proves the adjustments right or wrong. Words like proof or assurance in these options often signal an overstatement.
Common Mistakes to Avoid
- -Treating identical adjustments as automatic proof of fabrication
- -Assuming identical adjustments show the market values the features equally
- -Accepting the grid without checking the market support
Concept Deep Dive
Analysis
This question tests how an appraiser or reviewer should interpret an adjustment grid that uses the same dollar figure for unrelated differences of different sizes. Such a pattern is a signal to look into the support behind the adjustments, not proof of anything by itself. The best answer balances skepticism with the recognition that market evidence can sometimes support equal or rounded amounts.
Background Knowledge
Adjustments in the sales comparison approach should be market based, meaning they reflect how buyers actually react to differences between properties. Techniques such as paired sales, statistical analysis and other market studies are used to support adjustment amounts, and a reviewer evaluates whether that support exists and applies to the assignment.
Real-World Application
A review appraiser sees a grid in which bathrooms, garage stalls and a fireplace are each adjusted by the same amount. The reviewer asks for the paired sales or other market data behind each figure before deciding whether the adjustments are credible.
More Sales Comparison Questions
Supported adjustments are: non-market financing $10,000, GLA $36/sf, garage $3,500 per car, pool/spa $12,500. A comparable identical to the 2,800 sf subject sold for $267,000 with non-market financing. What is its adjusted price?
Using GLA $36/sf and non-market financing $10,000: a 3,100 sf comparable sold for $277,000 with non-market financing; the subject has 2,800 sf. Bath count differences are not adjusted. What is the adjusted price?
Using garage $3,500 per car and pool/spa $12,500: a comparable with a 2-car garage and a pool/spa sold for $268,000. The subject has a 3-car garage and no pool. What is the adjusted price?
Using GLA $36/sf, garage $3,500 per car and pool/spa $12,500: a 2,600 sf comparable with a 2-car garage and a pool/spa sold for $264,000. The subject is 2,800 sf with a 3-car garage and no pool. What is the adjusted price?
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A house is a 4,000 square foot home in an area of 2,000 square foot homes. How must the appraiser treat this over-improvement in the sales comparison grid?
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