Two recently sold properties are nearly identical: both are 1,800-square-foot brick ranches on 0.25-acre lots, with updated kitchens and no garage. Comparable X has a screened porch (200 sq ft) and sold for $378,500; Comparable Y lacks a screened porch and sold for $369,900. The appraiser notes that both sales occurred in the same week, with no financing or seller concessions. What is the appropriate adjustment to apply to a subject property *with* a screened porch when using Comparable Y as the benchmark?
Correct Answer
A) Add $8,600 to Comparable Y’s sale price
The price differential is $378,500 − $369,900 = $8,600, attributable solely to the screened porch. When adjusting *from* Comparable Y (no porch) *to* the subject (with porch), the appraiser adds the contributory value — $8,600 — to Comparable Y’s sale price. Per USPAP Standards Rule 1-4(b), adjustments must reflect market reaction to differences, and the direction of adjustment depends on whether the subject has the feature and the comparable does not. Option C incorrectly implies a per-square-foot rate is required; the paired data supports a lump-sum adjustment since the feature is binary and consistently sized.
Why This Is the Correct Answer
The price differential is $378,500 − $369,900 = $8,600, attributable solely to the screened porch. When adjusting *from* Comparable Y (no porch) *to* the subject (with porch), the appraiser adds the contributory value — $8,600 — to Comparable Y’s sale price. Per USPAP Standards Rule 1-4(b), adjustments must reflect market reaction to differences, and the direction of adjustment depends on whether the subject has the feature and the comparable does not. Option C incorrectly implies a per-square-foot rate is required; the paired data supports a lump-sum adjustment since the feature is binary and consistently sized.
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