Property Valuation
In Hawaii, an appraiser notes that a subject property has a swimming pool but none of the comparable sales do. The appraiser should:
AA. Ignore the pool as it doesn't affect value in Hawaii
BB. Make a positive adjustment to the subject by adding the pool's contribution to value to the adjusted sale prices✓ Correct
CC. Add the pool value directly to each comparable's sale price
DD. Disqualify comparables that lack pools
Explanation
When the subject has a feature the comparables lack (like a pool), the appraiser makes a positive adjustment to the comparable sales prices, reflecting the feature's contribution to value.
Related Hawaii Property Valuation Questions
- What is the 'gross rent multiplier' (GRM) and how is it calculated?
- The capitalization rate (cap rate) used in the income approach is calculated as:
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