The subject has a three-car garage; the comparable has two. If the market pays $9,000 for the third bay, the adjustment to the comparable is:
Correct Answer
D) Plus $9,000
Why this is correct: The correct answer, 'Plus $9,000,' is correct. The comparable is inferior to the subject (2-car vs. 3-car garage). To make it equivalent to the subject, its sale price must be adjusted upward by the market-derived value of the feature ($9,000). Why the other choices are wrong: 'No adjustment, since both have garages' is wrong; the quantity difference is material. 'Minus $9,000' is wrong; that would make the comparable even more inferior. 'Plus $4,500, splitting the difference' is wrong; adjustment is based on the full contributory value of the difference, not an average. Exam tip: Always ask: Is the comparable superior or inferior to the subject? Adjust the comparable's price *toward* the subject. Inferior? Add. Superior? Subtract.
Why This Is the Correct Answer
Why this is correct: The correct answer, 'Plus $9,000,' is correct. The comparable is inferior to the subject (2-car vs. 3-car garage). To make it equivalent to the subject, its sale price must be adjusted upward by the market-derived value of the feature ($9,000). Why the other choices are wrong: 'No adjustment, since both have garages' is wrong; the quantity difference is material. 'Minus $9,000' is wrong; that would make the comparable even more inferior. 'Plus $4,500, splitting the difference' is wrong; adjustment is based on the full contributory value of the difference, not an average. Exam tip: Always ask: Is the comparable superior or inferior to the subject? Adjust the comparable's price *toward* the subject. Inferior? Add. Superior? Subtract.
More Sales Comparison Questions
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