A subject property does not have a finished basement. A comparable sale closed at $420,000 and does have a finished basement. Market evidence shows buyers in that neighborhood pay about $18,000 more for a finished basement. What adjustment should the appraiser make to the comparable?
Correct Answer
A) Subtract $18,000 from the comparable’s sale price because the comparable is superior
When the comparable is superior to the subject, the appraiser adjusts the comparable downward. Here, the comparable’s finished basement makes it more valuable than the subject, so the appraiser subtracts the market-supported contribution of $18,000 from the comparable’s sale price.
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Janelle is appraising a 1,700-square-foot ranch home in a stable suburban subdivision. Which property is generally the best comparable to rely on most heavily?
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Rosa is preparing the sales comparison grid for a 1,900-square-foot subject property with no deck. Comparable Sale 1 sold for $412,000, has 2,000 square feet, and has a deck. Market data support a $40-per-square-foot adjustment for gross living area and an $8,000 adjustment for a deck. What is the comparable’s adjusted sale price?