The absolute GLA difference is 210 sf and a supported marginal rate is $65/sf. What is the adjustment MAGNITUDE, without a sign? Direction would additionally require knowing which property is larger.
Correct Answer
C) $13,650
210×65=13650. Common errors: misplacing the decimal in the area gives $1,365; misplacing the decimal in the rate gives $136,500; halving the product gives $6,825.
Why This Is the Correct Answer
Option C is correct because 210 sf x $65/sf = $13,650. That is the dollar size of the adjustment; whether it is added or subtracted depends on whether the comparable is smaller or larger than the subject.
Why the Other Options Are Wrong
Option A: $1,365
Option A, $1,365, results from misplacing the decimal in the area, effectively using 21 sf: 210 x $65 / 10 = $1,365. The correct magnitude is 210 x $65 = $13,650.
Option B: $6,825
Option B, $6,825, halves the product: 210 x $65 / 2 = $6,825. Nothing in the facts calls for halving, so the magnitude is 210 x $65 = $13,650.
Option D: $136,500
Option D, $136,500, results from misplacing the decimal in the rate, effectively using $650/sf: 210 x $65 x 10 = $136,500. The correct magnitude is 210 x $65 = $13,650.
Size First, Sign Second
Multiply difference by rate to get the size of the adjustment, then decide plus or minus by comparing the comparable with the subject.
How to use: Use this to separate the arithmetic from the direction decision on grid adjustment questions.
Exam Tip
Estimate the answer roughly first (about 200 x 65 is about 13,000) so you can spot decimal-place errors in the choices.
Common Mistakes to Avoid
- -Shifting the decimal point in the area or rate
- -Halving the adjustment without any support
- -Confusing the magnitude with the direction of the adjustment
Concept Deep Dive
Analysis
This question tests computing the size of a GLA adjustment from an area difference and a supported marginal rate. The magnitude is simply the difference multiplied by the rate. The sign depends on which property is larger, but the question asks only for the magnitude.
Background Knowledge
A marginal GLA adjustment rate reflects how much the market pays per square foot of difference in living area. The adjustment magnitude is the area difference times that rate, and the direction depends on whether the comparable is superior or inferior to the subject.
Real-World Application
A comparable has 210 sf more living area than the subject, and the appraiser's paired sales support $65 per square foot. The appraiser computes a $13,650 adjustment and, because the comparable is larger, enters it as a minus.
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?
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