When does a feature in a home warrant no adjustment despite costing thousands to install?
Correct Answer
A) When the buyer pool does not pay more for it
Why this is correct: Adjustments reflect market-derived contributory value, not cost. If buyers don't pay more for a feature, its adjustment is zero regardless of installation cost. Why the other choices are wrong: 'When it is less than five years old' doesn't guarantee market value; age isn't the determinant. 'When the cost falls under 1% of the price' is arbitrary; small cost doesn't mean no adjustment. 'When both agents agree it adds nothing' is not a reliable market indicator. Exam tip: Value is what the market pays, not what it costs.
Why This Is the Correct Answer
Why this is correct: Adjustments reflect market-derived contributory value, not cost. If buyers don't pay more for a feature, its adjustment is zero regardless of installation cost. Why the other choices are wrong: 'When it is less than five years old' doesn't guarantee market value; age isn't the determinant. 'When the cost falls under 1% of the price' is arbitrary; small cost doesn't mean no adjustment. 'When both agents agree it adds nothing' is not a reliable market indicator. Exam tip: Value is what the market pays, not what it costs.
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