A comparable sold for $412,000 and has a 3-car garage. The subject has a 2-car garage, and the appraiser puts the difference at $9,000. How should the appraiser adjust the comparable's sale price for the garage difference?
Correct Answer
C) Adjust the comparable down to $403,000: the subject lacks the feature
C. Adjust the comparable downward to $403,000. The comparable has the superior garage. Remove the stated $9,000 contribution to make that sale comparable to the subject. $412,000 − $9,000 = $403,000. This is a garage-adjusted comparable, not necessarily the final subject value. Scope and exceptions: The $9,000 is stipulated, not a universal price per garage space. Real adjustments require market support. Source: B4-1.3-09, Adjustments to Comparable Sales — https://guide-selling.fanniemae.com/sel/b4-1.3-09/adjustments-comparable-sales
Why This Is the Correct Answer
C. Adjust the comparable downward to $403,000. The comparable has the superior garage. Remove the stated $9,000 contribution to make that sale comparable to the subject. $412,000 − $9,000 = $403,000. This is a garage-adjusted comparable, not necessarily the final subject value. Scope and exceptions: The $9,000 is stipulated, not a universal price per garage space. Real adjustments require market support.
Why the Other Options Are Wrong
Option A: Make no adjustment, as garage size is a matter of buyer preference
It ignores the value difference supplied in the question.
Option B: Adjust the comparable up to $421,000, since the subject is worth less
Adding $9,000 makes the superior comparable even more unlike the subject.
Option D: Adjust the subject up by $9,000 to bring it level with the comparable
This changes the subject rather than adjusting the comparable sale.
Exam Tip
Ask what the comparable would indicate without its superior feature.
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