A comparison grid uses separate columns for feature descriptions and signed dollar adjustments. How should a supported garage difference be communicated in that grid?
Correct Answer
D) Describe the difference and show its supported signed dollar adjustment
A comparison grid should communicate both the relevant feature difference and its supported signed dollar effect so intended users can understand the line item. A net total or description alone cannot explain an individual adjustment. This is a communication principle rather than an unversioned universal form-layout mandate.
Why This Is the Correct Answer
Option D is correct because the grid should describe the garage difference and show its supported signed dollar adjustment on that line. This lets intended users see what differs and how the market's reaction was applied. Adjustments summarized in a grid should be supported with market data.
Why the Other Options Are Wrong
Option A: Only describe the feature without the needed dollar entry
Option A only describes the feature without the needed dollar entry. Readers would see the difference but not how it changed the comparable's price, so the adjustment is not communicated.
Option B: Enter a net total for the comparable without identifying the difference
Option B enters a net total for the comparable without identifying the difference. A net figure hides the individual adjustments, so readers cannot tell how the garage difference was treated.
Option C: Place an unexplained number in an unrelated summary
Option C places an unexplained number in an unrelated summary. An unexplained figure outside its grid line does not show which difference it addresses or how it was supported.
Describe it, then price it
Each grid line answers two questions: what differs, and how much did the market pay for it.
How to use: Use this when checking whether a grid entry fully communicates an adjustment.
Exam Tip
Look for answers that pair the description of a difference with its signed, supported dollar amount.
Common Mistakes to Avoid
- -Describing a difference but leaving the adjustment column blank
- -Reporting only net adjustment totals
- -Putting adjustments in a summary without linking them to features
Concept Deep Dive
Analysis
This question tests how adjustments are communicated in a comparison grid. Intended users need to see both the feature difference and its signed dollar effect to follow the analysis. A description alone or a net total alone leaves the reasoning unclear.
Background Knowledge
Appraisal reports must contain enough information for intended users to understand the analysis. In the sales comparison grid, each element of comparison shows the feature descriptions and the corresponding signed adjustment. Clear line items make the reasoning traceable.
Real-World Application
The subject has a two-car garage and a comparable has a one-car garage. The appraiser enters both descriptions on the garage line and a +$8,000 adjustment supported by paired sales, so the underwriter can follow the change at a glance.
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