A comparable has 3 garage bays and the subject 2. Market evidence isolates the extra third bay’s $8,000 positive contribution relative to 2 bays. What signed garage adjustment applies to the comparable toward the subject?
Correct Answer
C) −$8,000
(2−3)×8000=−8000. Common errors: adding for two bays instead of deducting for one gives $16,000; deducting for two bays gives −$16,000; deducting for all three bays gives −$24,000.
Why This Is the Correct Answer
Option C is correct because the only difference is one extra bay on the comparable, and the market shows that third bay contributes $8,000. Adjusting the superior comparable toward the subject gives (2 − 3) × $8,000 = −$8,000. Adjustments are made to the comparable, not the subject.
Why the Other Options Are Wrong
Option A: −$24,000
Option A, −$24,000, deducts for all three bays: −3 × $8,000 = −$24,000. The subject also has two bays, so only the one extra bay is adjusted, giving −$8,000.
Option B: −$16,000
Option B, −$16,000, deducts for two bays: −2 × $8,000 = −$16,000. The bay difference is one, so the adjustment is −$8,000.
Option D: $16,000
Option D, $16,000, adds for two bays: 2 × $8,000 = $16,000, as if the comparable were inferior. The comparable has the extra bay and is superior, and only the one-bay difference counts, so the adjustment is (2 − 3) × $8,000 = −$8,000.
Adjust only the difference
Count only the units the comparable has beyond the subject, then subtract if the comparable has more.
How to use: Use this for garage, bathroom or other count-based feature adjustments.
Exam Tip
Match the market evidence to the exact difference; here the data measures the third bay over two.
Common Mistakes to Avoid
- -Adjusting for all of the comparable's bays instead of the difference
- -Making a positive adjustment for a superior comparable
Concept Deep Dive
Analysis
This question tests sizing and signing a feature adjustment. The market evidence isolates the contribution of the third bay relative to two bays, which is exactly the difference between the comparable and the subject. Because the comparable is superior, the adjustment is negative.
Background Knowledge
Feature adjustments reflect the contribution of the difference between the comparable and the subject. The contribution of an additional unit of a feature, such as a third garage bay, may differ from that of the first or second. The sign depends on which property is superior.
Real-World Application
The subject has a two-car garage and a comparable has a three-car garage. Paired sales show buyers pay about a certain amount more for the third bay, so the appraiser deducts that amount from the comparable.
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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