In the direct comparison approach to valuation in Alberta, what adjustments are commonly made to comparable sales?
Correct Answer
C) Adjustments for differences in location, size, age, condition, features and time of sale
In the direct comparison approach, adjustments are made to comparable sales to account for differences from the subject property. Common adjustments include location, property size, lot size, age, condition, number of bedrooms/bathrooms, garage type, basement development, time of sale (market changes), and other features that affect value.
Why This Is the Correct Answer
Under standard appraisal practice in Alberta, the direct comparison approach requires adjustments for all significant differences between comparable properties and the subject. Common adjustments include location, size, age, condition, features, lot size, basement development, garage type, and time of sale. These adjustments are supported by paired sales analysis and market data to ensure they reflect actual market reactions.
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