When adjustments for a single element run in different directions across comparables, the appraiser should:
Correct Answer
C) Verify the rate is applied consistently to each
Why this is correct: The governing concept is that adjustments must reflect the consistent value difference (rate) for a given feature. Opposite adjustment directions (positive or negative) are normal because some comparable sales are superior and some are inferior to the subject property. The key is that the same dollar amount or percentage rate for that element is applied consistently to each comparable, with the sign (direction) determined by whether the comparable is better or worse than the subject. Why the other choices are wrong: 'Use only the comparables adjusted upward' is wrong because eliminating valid comparables based on adjustment direction introduces bias and reduces the reliability of the analysis. 'Average the adjustments before applying them' is wrong because averaging positive and negative adjustments for the same feature would incorrectly cancel out the real value difference and distort the adjusted sale prices. 'Reduce all adjustments to a single figure' is wrong because this misrepresents the adjustment process; each comparable receives its own specific adjustment based on its individual characteristics relative to the subject. Exam tip: Remember, the adjustment *rate* (e.g., $5,000 for a bathroom) is constant; the *direction* (add or subtract) changes per comparable based on its comparison to the subject.
Why This Is the Correct Answer
Why this is correct: The governing concept is that adjustments must reflect the consistent value difference (rate) for a given feature. Opposite adjustment directions (positive or negative) are normal because some comparable sales are superior and some are inferior to the subject property. The key is that the same dollar amount or percentage rate for that element is applied consistently to each comparable, with the sign (direction) determined by whether the comparable is better or worse than the subject. Why the other choices are wrong: 'Use only the comparables adjusted upward' is wrong because eliminating valid comparables based on adjustment direction introduces bias and reduces the reliability of the analysis. 'Average the adjustments before applying them' is wrong because averaging positive and negative adjustments for the same feature would incorrectly cancel out the real value difference and distort the adjusted sale prices. 'Reduce all adjustments to a single figure' is wrong because this misrepresents the adjustment process; each comparable receives its own specific adjustment based on its individual characteristics relative to the subject. Exam tip: Remember, the adjustment *rate* (e.g., $5,000 for a bathroom) is constant; the *direction* (add or subtract) changes per comparable based on its comparison to the subject.
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