Property Valuation
In a comparable sales analysis, a subject property lacks a garage that the comparable has. The appraiser would make a:
APositive adjustment to the comparable (add value)✓ Correct
BNegative adjustment to the comparable (subtract value)
CNo adjustment
DPositive adjustment to the subject
Explanation
When the comparable has a feature the subject lacks (superior feature), the appraiser adjusts downward on the comparable (subtract). When the comparable lacks a feature the subject has (inferior), the appraiser adjusts upward. In this case the comparable is superior, so a downward (negative) adjustment is made to the comparable. So the adjustment to the comparable is negative/downward. The correct answer is a negative adjustment to the comparable.
Related Hawaii Property Valuation Questions
- What is a 'going concern value' versus 'real property value' in Hawaii business/property appraisal?
- What is 'regression' and 'progression' in real estate value theory?
- What is a 'real estate market analysis' in the context of property valuation, distinct from an appraisal?
- What is 'value reconciliation' in the context of a Hawaii appraisal using multiple approaches?
- What is 'fee simple value versus leasehold value' comparison in Hawaii and why is leasehold typically discounted?
- What is 'allocation method' for land valuation and when is it used in Hawaii?
- What is 'interim use' valuation in Hawaii real estate and when does it apply?
- What is 'absorption analysis' in real estate market research and why is it relevant to Hawaii development?
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →