In the sales comparison approach to appraisal, adjustments are made to which properties?
Correct Answer
B) The comparable properties only
In the sales comparison approach, adjustments are always made to the comparable properties, never to the subject property. The subject property is the standard being valued. If a comparable is inferior to the subject in some feature, a positive adjustment is added to the comparable's sale price; if the comparable is superior, a negative adjustment is made. This process brings each comparable's value in line with what it would have sold for if it were identical to the subject property.
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