An appraiser concludes at the indication from the comparable with the lowest gross adjustment. Is this defensible?
Correct Answer
C) Yes, if that comparable is also the most similar in other respects
Why this is correct: low gross adjustment is strong evidence of similarity, and where the rest of the analysis agrees, that indication is the best supported. Why the other choices are wrong: averaging is a convention and not a requirement, and it dilutes the best comparable with the worst; gross adjustment alone can mislead where a comparable is close in measurable respects and far in unmeasured ones; and nothing requires the median.
Why This Is the Correct Answer
Why this is correct: low gross adjustment is strong evidence of similarity, and where the rest of the analysis agrees, that indication is the best supported. Why the other choices are wrong: averaging is a convention and not a requirement, and it dilutes the best comparable with the worst; gross adjustment alone can mislead where a comparable is close in measurable respects and far in unmeasured ones; and nothing requires the median.
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In the sales comparison approach, a comparable property sold for $350,000. It has a two-car garage while the subject has a one-car garage. If a garage bay is worth $8,000, what is the adjusted sale price of the comparable?
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A comparable sold for $340,000. It has one more full bathroom than the subject, and paired sales indicate a bathroom contributes $6,000 in this market. What is the comparable’s adjusted sale price?