A $350,000 comparable has 2 garage bays; the subject has 1. Market evidence isolates $8,000 for that one extra comparable bay. No other adjustments apply. What adjusted comparable price results?
Correct Answer
B) $342,000
350000-8000=342000. Common errors: adding the bay contribution instead of subtracting it gives $358,000; adding it for both of the comparable’s bays gives $366,000; deducting for both of the comparable’s bays gives $334,000.
Why This Is the Correct Answer
Option B is correct because the comparable has 2 bays and the subject has 1, so the comparable has one extra bay worth $8,000. Adjusting the comparable toward the subject gives $350,000 - $8,000 = $342,000.
Why the Other Options Are Wrong
Option A: $334,000
Option A, $334,000, deducts for both of the comparable's bays: $350,000 - 2 x $8,000 = $334,000. The subject also has one bay, so only the one extra bay is adjusted: $350,000 - $8,000 = $342,000.
Option C: $358,000
Option C, $358,000, adds the bay contribution instead of subtracting it: $350,000 + $8,000 = $358,000. The comparable is superior, so its price is reduced to $350,000 - $8,000 = $342,000.
Option D: $366,000
Option D, $366,000, adds $8,000 for each of the comparable's 2 bays: $350,000 + 2 x $8,000 = $366,000. That adjusts in the wrong direction and for the total bay count; only the one extra bay is adjusted, downward: $350,000 - $8,000 = $342,000.
CBS: Comp Better, Subtract
If the Comparable is Better, Subtract; if the comparable is inferior, add.
How to use: Use this to set the sign of each adjustment line in the sales comparison grid.
Exam Tip
Adjust only for the difference between the properties; count the extra feature, not the comparable's total.
Common Mistakes to Avoid
- -Adding instead of subtracting for a superior comparable
- -Adjusting for the comparable's total feature count instead of the difference
Concept Deep Dive
Analysis
This question tests adjustment direction for a feature the comparable has but the subject lacks. The comparable has one more garage bay than the subject, so it is superior in that respect. Its price is adjusted downward by the supported contribution of that one bay.
Background Knowledge
Adjustments are made to the comparable, not the subject. When the comparable has a feature the subject lacks, the comparable's price is reduced by the market contribution of that feature; when it lacks a feature the subject has, its price is increased.
Real-World Application
A subject with a one-car garage is compared with a sale that has a two-car garage. Paired sales show the second bay adds about $8,000, so the appraiser enters a -$8,000 adjustment for the comparable.
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