Property ValuationIntermediateDelaware Exam
In the sales comparison approach, if a comparable property has a feature that the subject property lacks, the appraiser makes what type of adjustment to the comparable's price?
AA positive (upward) adjustment to the subject's value
BA negative (downward) adjustment to the comparable's priceCorrect
CNo adjustment is needed
DAn adjustment only to the subject property's land value
Why A negative (downward) adjustment to the comparable's price Is Correct
Answer B: A negative (downward) adjustment to the comparable's price
When a comparable has a feature the subject lacks, the comparable is superior in that regard, so the appraiser makes a negative (downward) adjustment to the comparable's price to equalize for the difference.
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
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