Property Valuation
An appraiser finds that a comparable home sold for $285,000 but has an extra half bathroom that the subject property lacks. If a half bathroom contributes approximately $3,500 to value, what adjusted sale price is used for comparison?
A$288,500
B$281,500✓ Correct
C$285,000
D$278,000
Explanation
Since the comparable is SUPERIOR (it has an extra half bathroom that the subject lacks), we make a NEGATIVE adjustment to the comparable. Adjusted price = $285,000 − $3,500 = $281,500. Remember: adjustments are always made to the comparable, never the subject. If the comparable is better, subtract; if worse, add.
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