Property Valuation
When using the sales comparison approach, an appraiser makes adjustments for differences. If the subject property has 3 bedrooms and the comparable has 4 bedrooms (with each bedroom worth $10,000), the appraiser should:
AAdd $10,000 to the comparable's sale price
BSubtract $10,000 from the comparable's sale price✓ Correct
CAdd $10,000 to the subject's estimated value
DMake no adjustment since bedrooms vary
Explanation
The comparable has a feature (extra bedroom) the subject lacks. To make the comparable equivalent to the subject, subtract the value of the extra bedroom from the comparable's price: this reduces the comparable to make it comparable to the (inferior) subject.
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