Two controlled cash-equivalent pairs in the same market isolate differences: A has 3 bedrooms and 2 garage bays at $410,000; B is otherwise identical with 4 bedrooms at $430,000; C is otherwise identical to A but has 1 garage bay at $395,000. A comparable at $380,000 has 3 bedrooms and 1 bay; the subject has 4 bedrooms and 2 bays. Apply only these supported differences. What adjustments and price result?
Correct Answer
B) Bedroom +$20,000; garage +$15,000; adjusted price $415,000
Bedroom = 430000 − 410000 = 20000; garage = 410000 − 395000 = 15000; 380000 + 20000 + 15000 = 415000. Common errors: swapping the two paired differences gives Bedroom +$15,000; garage +$20,000; adjusted price $415,000; adjusting downward instead of upward gives Bedroom −$20,000; garage −$15,000; adjusted price $345,000; leaving out the garage difference gives Bedroom +$20,000; garage $0; adjusted price $400,000.
Why This Is the Correct Answer
Option B is correct because the bedroom contribution is $430,000 − $410,000 = $20,000 and the garage contribution is $410,000 − $395,000 = $15,000. The comparable lacks a bedroom and a garage bay compared with the subject, so both adjustments are positive. The adjusted price is $380,000 + $20,000 + $15,000 = $415,000.
Why the Other Options Are Wrong
Option A: Bedroom +$15,000; garage +$20,000; adjusted price $415,000
Option A shows bedroom +$15,000, garage +$20,000 and an adjusted price of $415,000. It swaps the two paired differences; the bedroom pair (B versus A) gives $20,000 and the garage pair (A versus C) gives $15,000, so although the total matches, the line items are wrong.
Option C: Bedroom −$20,000; garage −$15,000; adjusted price $345,000
Option C shows bedroom −$20,000, garage −$15,000 and an adjusted price of $345,000. It adjusts downward ($380,000 − $35,000) even though the comparable is inferior to the subject; adjustments are made to the comparable toward the subject, so these should be +$20,000 and +$15,000 for $415,000.
Option D: Bedroom +$20,000; garage $0; adjusted price $400,000
Option D shows bedroom +$20,000, garage $0 and an adjusted price of $400,000. It leaves out the supported garage difference; the comparable has 1 bay versus the subject's 2, so the $15,000 garage adjustment belongs in the grid, giving $415,000.
CBS: Comparable Better, Subtract
If the comparable is better than the subject, subtract; if it is inferior, add.
How to use: Use this to check the sign of each adjustment in a grid before totaling.
Exam Tip
When two options share the same total, check whether each line item matches the correct pair; graders test the individual adjustments too.
Common Mistakes to Avoid
- -Swapping which pair measures which feature
- -Adjusting the comparable down when it is inferior to the subject
- -Leaving out a supported adjustment for a feature the comparable lacks
Concept Deep Dive
Analysis
This question tests paired sales analysis and the direction of adjustments. Sales A and B differ only by a bedroom, giving the bedroom contribution, and sales A and C differ only by a garage bay, giving the garage contribution. Because the comparable is inferior to the subject in both features, both adjustments are added to the comparable's price.
Background Knowledge
Paired sales analysis compares sales that are alike except for one feature, so the price difference indicates that feature's contribution. Adjustments are made to the comparable, not the subject. When the comparable is inferior, its price is adjusted upward; when superior, downward.
Real-World Application
An appraiser finds three nearly identical resales in one subdivision differing only by a bedroom or a garage bay. She uses the pairs to support her bedroom and garage adjustments and documents the pairing in the addendum.
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?
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