The subject sits just inside a top-rated school attendance zone; an otherwise perfect comparable sits two blocks away, outside it. That comparable:
Correct Answer
C) Is usable with a supported location adjustment for the boundary
Why this is correct: A comparable sale outside a desirable school zone can still be used if a supported adjustment is made for the location difference. The adjustment should be based on market evidence (e.g., paired sales analysis) quantifying the premium for being inside the zone. Why the other choices are wrong: "Is unusable at any adjustment amount" is too restrictive; comparables can be adjusted. "Needs no location adjustment at all, since it sits physically nearby" ignores that school boundaries create significant value differences despite proximity. "Should be adjusted using its lower tax bill" confuses tax impact with market value impact. Exam tip: Location adjustments are often needed for non-physical differences like school zones, even for nearby sales.
Why This Is the Correct Answer
Why this is correct: A comparable sale outside a desirable school zone can still be used if a supported adjustment is made for the location difference. The adjustment should be based on market evidence (e.g., paired sales analysis) quantifying the premium for being inside the zone. Why the other choices are wrong: "Is unusable at any adjustment amount" is too restrictive; comparables can be adjusted. "Needs no location adjustment at all, since it sits physically nearby" ignores that school boundaries create significant value differences despite proximity. "Should be adjusted using its lower tax bill" confuses tax impact with market value impact. Exam tip: Location adjustments are often needed for non-physical differences like school zones, even for nearby sales.
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