Which comparable is most similar to the subject as adjusted?
Correct Answer
D) Net adjustment +3%, gross adjustment 6%
Why this is correct: Gross adjustment percentage best indicates similarity; a low gross (6%) means few adjustments were needed, even if net is small but positive (3%). Why the other choices are wrong: 'Net adjustment −1%, gross adjustment 22%' has high gross, showing many differences. 'Net adjustment +8%, gross adjustment 9%' has moderate gross but high net, indicating consistent inferiority. 'Net adjustment 0%, gross adjustment 30%' has very high gross, meaning large offsetting adjustments. Exam tip: Prioritize low gross adjustment when selecting comparables; net can be misleading.
Why This Is the Correct Answer
Plus 3 percent net with 6 percent gross means very little adjustment was required in either direction, indicating genuine similarity to the subject.
Why the Other Options Are Wrong
Option A: Net adjustment −1%, gross adjustment 22%
A 22 percent gross adjustment means substantial differences whose offsetting directions merely cancel in the net figure.
Option B: Net adjustment +8%, gross adjustment 9%
Nine percent gross is respectable but still more adjustment than the correct answer required.
Option C: Net adjustment 0%, gross adjustment 30%
Zero net with 30 percent gross is the classic trap — perfect-looking net concealing the most heavily adjusted comparable in the set.
Net Can Lie, Gross Cannot
Net Can Lie, Gross Cannot. Zero net with thirty percent gross is the least comparable sale in the grid.
How to use: Read gross first to judge similarity, then net to see the direction of the overall movement.
Exam Tip
Many review guidelines set gross adjustment thresholds precisely because net figures can be made to look clean by offsetting errors.
Common Mistakes to Avoid
- -Judging comparability by net adjustment alone
- -Treating a low net figure as evidence of similarity
- -Weighting comparables without reference to gross adjustment
Concept Deep Dive
Analysis
Two figures describe a comparable's adjustment profile and they answer different questions. Net adjustment is the algebraic sum, showing how far the adjusted price moved from the sale price overall. Gross adjustment sums the absolute values regardless of direction, showing how much adjusting was required in total — which is the real measure of similarity. A comparable at plus 3 percent net and 6 percent gross needed very little work in either direction and was genuinely similar to the subject. The alternatives illustrate why net alone misleads. Minus 1 percent net with 22 percent gross, and zero net with 30 percent gross, both look excellent by net and are in fact heavily adjusted properties whose large offsetting adjustments cancel arithmetically while each carries its own estimation error. Plus 8 percent net with 9 percent gross is respectable — nearly all adjustment running one direction — but still requires more adjustment than the correct answer. Read both figures, always.
Background Knowledge
Net adjustment is the algebraic sum of adjustments; gross adjustment sums their absolute values. Gross adjustment measures comparability, since offsetting adjustments cancel in the net figure while each carries estimation error.
Real-World Application
An appraiser weights the 3 percent net and 6 percent gross comparable most heavily, and explains the low gross adjustment as the reason.
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Previous Question
An appraiser uses paired sales to estimate the contributory value of a swimming pool. She identifies three pairs: Pair 1 shows a $14,500 difference; Pair 2, $16,200; Pair 3, $13,800. All pairs control for age, size, condition, location, and sale date (within 5 days). The subject property has a pool. What is the most appropriate way to apply these paired results in the reconciliation?
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