Using the sales comparison method, how should the extra bathroom adjustment be made?

Using the sales comparison method, how should the extra bathroom adjustment be made?

• A. Add $11,000 to the comparable property
• B. No adjustment necessary
• C. Add $1,000 to the comparable property
• D. Add $1,000 to the subject property

Answer: (D)

In the context of the sales comparison method, when evaluating properties to determine an appropriate value, adjustments are made to ensure a more equitable comparison between the subject property and comparable properties. If the subject property has an extra bathroom compared to the comparable property, an adjustment must be made to accurately reflect the value difference due to this feature. Adding $1,000 to the subject property is the correct approach because it recognizes that the subject property is superior to the comparable property. By adjusting the subject property’s value upwards, it reflects the added value of the extra bathroom that the subject property possesses. This allows the appraiser or agent to arrive at a fair market value that accounts for the additional feature. In scenarios where no adjustment is made, or adjustments are incorrectly applied to the comparable property instead of the subject property, it may lead to inaccurate value determinations. Therefore, making this correction helps ensure the sales comparison method produces reliable and meaningful results.

In the context of the sales comparison method, when evaluating properties to determine an appropriate value, adjustments are made to ensure a more equitable comparison between the subject property and comparable properties. If the subject property has an extra bathroom compared to the comparable property, an adjustment must be made to accurately reflect the value difference due to this feature.

Adding $1,000 to the subject property is the correct approach because it recognizes that the subject property is superior to the comparable property. By adjusting the subject property’s value upwards, it reflects the added value of the extra bathroom that the subject property possesses. This allows the appraiser or agent to arrive at a fair market value that accounts for the additional feature.

In scenarios where no adjustment is made, or adjustments are incorrectly applied to the comparable property instead of the subject property, it may lead to inaccurate value determinations. Therefore, making this correction helps ensure the sales comparison method produces reliable and meaningful results.