When preparing a CMA for a detached home, which property characteristic requires the most significant adjustment when comparing to similar sales?
Correct Answer
B) Difference in living area from 1,800 to 2,400 square feet
Living area differences typically require the largest adjustments in CMAs because square footage directly correlates with property value. A 600 square foot difference represents substantial additional living space that significantly impacts market value compared to the other factors listed.
Why This Is the Correct Answer
Option B is correct because living area differences have the most direct and significant impact on property value. A 600 square foot difference (from 1,800 to 2,400 sq ft) represents a 33% increase in usable living space, which typically translates to the largest dollar adjustment in a CMA. Square footage is the primary valuation metric used by appraisers and real estate professionals because it directly correlates with the functional utility and market value of residential properties.
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