One comparable in a grid required an adjustment on every line, totaling 35% gross. What does this signal about the appraisal?
Correct Answer
D) The sale barely qualifies as comparable — better data or more support is needed
Why this is correct: USPAP and appraisal principles state that comparable sales should be similar to the subject. A gross adjustment total (the sum of absolute values) exceeding 25-30% suggests the sale is not truly comparable, requiring either better data selection or extensive justification for its use. Why the other choices are wrong: While each individual adjustment might be supported, the cumulative effect weakens the comparison. Rechecking the math doesn't address the fundamental suitability issue. The subject being over-improved might cause large adjustments, but the primary signal is the poor comparability of the sale itself. Exam tip: High gross adjustments flag a weak comparable. Seek better sales or provide strong justification.
Why This Is the Correct Answer
Why this is correct: USPAP and appraisal principles state that comparable sales should be similar to the subject. A gross adjustment total (the sum of absolute values) exceeding 25-30% suggests the sale is not truly comparable, requiring either better data selection or extensive justification for its use. Why the other choices are wrong: While each individual adjustment might be supported, the cumulative effect weakens the comparison. Rechecking the math doesn't address the fundamental suitability issue. The subject being over-improved might cause large adjustments, but the primary signal is the poor comparability of the sale itself. Exam tip: High gross adjustments flag a weak comparable. Seek better sales or provide strong justification.
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