Two verified sales are alike in every respect except that one has a two-car garage. They sold for $265,000 (with garage) and $252,000 (without). A comparable lacks the garage that the subject has. What adjustment does this pair indicate?
Correct Answer
C) +$13,000 to the comparable
The pair isolates the garage: $265,000 − $252,000 = $13,000. The comparable lacks a feature the subject has, so it is inferior and is adjusted upward by $13,000.
Why This Is the Correct Answer
Option C is correct because $265,000 − $252,000 = $13,000 isolates the garage's contribution. The comparable lacks a feature the subject has, so it is inferior and receives a +$13,000 adjustment. This moves the comparable's price toward what it would have sold for with a garage.
Why the Other Options Are Wrong
Option A: −$13,000 to the comparable
Option A, −$13,000 to the comparable, has the right amount but the wrong direction. A comparable lacking the subject's garage is inferior, so it is adjusted upward by $13,000.
Option B: +$6,500 to the comparable
Option B, +$6,500 to the comparable, is half the paired difference ($13,000 ÷ 2). The full difference of $265,000 − $252,000 = $13,000 measures the garage, so the adjustment is +$13,000.
Option D: +$26,000 to the comparable
Option D, +$26,000 to the comparable, doubles the paired difference (2 × $13,000). The pair shows the garage contributes $13,000, so the adjustment is +$13,000.
CBS: Comp Better, Subtract
If the comparable is better than the subject, subtract; if the comparable is inferior, add.
How to use: Use this to decide the sign after extracting a paired sales difference.
Exam Tip
First compute the paired difference, then decide the sign by asking whether the comparable or the subject has the feature.
Common Mistakes to Avoid
- -Subtracting from a comparable that lacks the subject's feature
- -Splitting the paired difference in half
- -Doubling the paired difference
Concept Deep Dive
Analysis
This question tests paired sales extraction and adjustment direction. The pair differs only by the garage, so the price difference measures the garage. Because the comparable lacks the garage the subject has, it is inferior and is adjusted upward.
Background Knowledge
Paired sales analysis compares sales identical in all characteristics except one to estimate that feature's contribution. The difference in price is attributed to that feature. The result is then applied to comparables as an adjustment toward the subject.
Real-World Application
Two matched homes sell, one with a two-car garage for $13,000 more. The appraiser uses that figure to add $13,000 to a garageless comparable when valuing a subject with a garage.
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?
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