A verified pair of cash-equivalent sales in the same market has C2 at $672,000 and C4 at $615,000. Rights, terms, time and other material characteristics are matched. A suitable comparable sold for $598,000. The subject is C2; the comparable is C4. Assume the observed contribution applies and no other adjustments. What signed condition adjustment and adjusted comparable price result?
Correct Answer
A) +$57,000; $655,000
Pair difference=672000−615000=57000; adjustment=57000; comparable price=598000+(57000)=655000. Lower numerical C denotes better condition; rating steps do not define fixed dollar adjustments. Adjust the comparable toward the subject using the stipulated applicable market contribution, not installation cost or a price inferred solely from the feature label.
Why This Is the Correct Answer
Option A is correct because the pair difference is $672,000 - $615,000 = $57,000. The comparable is in C4 condition and the subject is C2, so the comparable is inferior and adjusted up by $57,000. The adjusted price is $598,000 + $57,000 = $655,000.
Why the Other Options Are Wrong
Option B: −$57,000; $541,000
Option B, -$57,000 and $541,000, uses the right amount but the wrong sign. A C4 comparable is in worse condition than a C2 subject, so it is adjusted upward: $598,000 + $57,000 = $655,000.
Option C: +$0; $598,000
Option C, +$0 and $598,000, makes no condition adjustment. The verified pair shows a $57,000 market difference that the stem says applies, so the correct adjusted price is $655,000.
Option D: +$57,000; $672,000
Option D, +$57,000 and $672,000, has the right adjustment but reports the C2 paired sale's price instead of adjusting the comparable. The adjustment applies to the comparable's own $598,000 price, giving $655,000.
Lower C, better house
Think of C ratings like race finishes: C1 is first place. A comparable with a higher C number than the subject is worse and gets a plus.
How to use: Use this when deciding the sign of a condition adjustment between UAD ratings.
Exam Tip
Decide which property is better before using the numbers; then apply the paired difference to the comparable's own sale price.
Common Mistakes to Avoid
- -Reading higher C numbers as better condition
- -Treating each rating step as a fixed dollar amount
- -Reporting the paired sale price instead of adjusting the comparable
Concept Deep Dive
Analysis
This question tests a paired sales condition adjustment using the UAD condition scale. The pair shows that C2 sold for $57,000 more than C4 ($672,000 - $615,000). Because a lower C number means better condition, the C4 comparable is inferior to the C2 subject and is adjusted upward.
Background Knowledge
The UAD condition ratings run from C1 to C6, with lower numbers indicating better condition. Rating steps do not carry fixed dollar values, so the amount of a condition adjustment must be supported by market evidence such as paired sales. Adjustments are made to the comparable, toward the subject.
Real-World Application
Two otherwise matched homes in a subdivision sold recently, a renovated C2 home at $672,000 and a dated C4 home at $615,000. The subject is a renovated C2 home, but the best comparable is a C4 that sold for $598,000. The appraiser adds $57,000, giving an adjusted price of $655,000.
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?
Using garage $3,500 per car and pool/spa $12,500: a comparable with a 2-car garage and a pool/spa sold for $268,000. The subject has a 3-car garage and no pool. What is the adjusted price?
Using GLA $36/sf, garage $3,500 per car and pool/spa $12,500: a 2,600 sf comparable with a 2-car garage and a pool/spa sold for $264,000. The subject is 2,800 sf with a 3-car garage and no pool. What is the adjusted price?
In a neighborhood with declining values and marketing times over six months, what must Fannie Mae lenders confirm about the sales comparison analysis?
A house is a 4,000 square foot home in an area of 2,000 square foot homes. How must the appraiser treat this over-improvement in the sales comparison grid?
According to the Interagency Appraisal and Evaluation Guidelines, which items should an appraisal’s market conditions discussion include?
A comparable listed at $420,000 and sold for $399,000. What sale-to-list price ratio (sale price ÷ list price) does this indicate?
An appraiser wants to describe the neighborhood boundaries in a Fannie Mae report. Which approach is acceptable?
Which of these is listed by Fannie Mae as a sales or financing concession?
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Previous Question
Three colonial-style homes in the subject's subdivision sold recently. Sale 1 sold for $372,000 and has net adjustments of +$8,000. Sale 2 sold for $395,000 after being listed at $409,000, and has net adjustments of −$9,000. Sale 3 sold for $401,000 and has net adjustments of −$9,000. Based on comparability, the appraiser weights the adjusted prices of Sales 1, 2 and 3 at 60%, 25% and 15% and rounds the result to the nearest $1,000. What is the indicated value by the sales comparison approach?
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Which method can estimate a feature's contribution to price in a large data set while holding other included characteristics constant?