In the sales comparison approach to valuation, when making adjustments for differences between the subject property and comparable sales, which property is adjusted?
Correct Answer
B) The comparable sales are adjusted to match the subject property
In the sales comparison approach, adjustments are always made to the comparable sales (comps), never to the subject property. If a comparable is superior to the subject in some feature, a negative adjustment is made to the comp's price; if the comparable is inferior, a positive adjustment is made. The goal is to make each comparable reflect what it would have sold for if it were identical to the subject property.
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