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ValuationAppraisal AdjustmentsMEDIUM

In the sales comparison approach to appraisal, adjustments for differences between the subject property and comparable sales are made to:

Correct Answer

B) The comparable properties' sale prices only

In the sales comparison approach, adjustments are always made to the comparable properties' sale prices, never to the subject property. If a comparable property is superior to the subject in a given feature, a negative adjustment is subtracted from that comparable's price. If a comparable is inferior to the subject, a positive adjustment is added. This process brings each comparable's adjusted sale price closer to what it would have sold for if it were identical to the subject property.

Answer Options
A
The subject property's estimated value only
B
The comparable properties' sale prices only
C
Both the subject property and the comparable properties
D
Neither; no adjustments are made in this approach

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Related Topics & Key Terms

Related Topics:

sales comparison approachpaired sales analysisappraisal reconciliationcost approachincome approachUSPAP

Key Terms:

sales comparison approachcomparable adjustmentssubject propertypositive adjustmentnegative adjustmentappraisal
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