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ValuationAppraisal_adjustmentsMEDIUM

In the sales comparison approach to appraisal, when a comparable property is superior to the subject property in a particular feature, the appraiser should:

Correct Answer

B) Subtract the adjustment amount from the comparable property's sale price

In the sales comparison approach, adjustments are always made to the comparable properties, never to the subject property. When a comparable is superior to the subject in a given feature, the appraiser subtracts the adjustment amount from the comparable's sale price (because the comparable sold for more due to that superior feature). Conversely, when a comparable is inferior to the subject, the appraiser adds the adjustment amount to the comparable's sale price. The goal is to adjust each comparable to make it equivalent to the subject property.

Answer Options
A
Add the adjustment amount to the subject property's value
B
Subtract the adjustment amount from the comparable property's sale price
C
Add the adjustment amount to the comparable property's sale price
D
Make no adjustment, since only inferior features are adjusted

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Related Topics & Key Terms

Related Topics:

CBS-rule

Key Terms:

adjustmentsCBS
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