Two comparables sold in the same month and are identical except for a swimming pool: the one with a pool sold for $342,000 and the one without for $318,000. The subject has no pool. What is the adjusted price of the comparable with the pool?
Correct Answer
C) $318,000
Why this is correct: the pair indicates the pool contributes $24,000, and the comparable is superior to the subject, so the adjustment is deducted from the comparable. Calculation: $342,000 - $24,000 = $318,000. Why the other choices are wrong: $366,000 adds the contribution, crediting the comparable for a feature the subject does not have; $342,000 leaves a measured difference unadjusted; $294,000 deducts $48,000, twice what the pair supports.
Why This Is the Correct Answer
Why this is correct: the pair indicates the pool contributes $24,000, and the comparable is superior to the subject, so the adjustment is deducted from the comparable. Calculation: $342,000 - $24,000 = $318,000. Why the other choices are wrong: $366,000 adds the contribution, crediting the comparable for a feature the subject does not have; $342,000 leaves a measured difference unadjusted; $294,000 deducts $48,000, twice what the pair supports.
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