Property Valuation
When comparing two properties using the sales comparison approach, an appraiser finds a comp with an extra bathroom. The appraiser should make an adjustment to the comparable by:
AA. Adding the value of a bathroom to the subject
BB. Subtracting the value of the extra bathroom from the comparable✓ Correct
CC. Ignoring the difference if it's minor
DD. Using a different comparable
Explanation
When the comparable is superior (extra bathroom), the appraiser subtracts the value of that feature from the comparable's price. This adjusts the comparable downward to reflect what it would have sold for if it were equal to the subject.
Related Georgia Property Valuation Questions
- When an appraiser determines the 'contributory value' of a feature (like a swimming pool), this represents:
- When performing a comparable market analysis (CMA), a Georgia agent should select comparables that:
- The sales comparison approach to value is most appropriate for:
- An appraiser's 'scope of work' decision determines:
- A 'before and after' method is used in appraisal when:
- The subject property in an appraisal refers to:
- The 'effective age' of a building in appraisal refers to:
- Physical deterioration in the cost approach is divided into:
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