Property Valuation
An appraiser applies a negative adjustment to a comparable sale that has a feature the subject property lacks. For example, the comparable has a pool and the subject does not. The adjustment is made to:
AThe subject property's value
BThe comparable sale's price✓ Correct
CThe appraiser's estimate of pool value
DBoth the subject and the comparable equally
Explanation
In the sales comparison approach, adjustments are always made to the comparable sale, not to the subject property. If the comparable is superior (has a pool the subject lacks), a negative adjustment is subtracted from the comparable's sale price to make it more like the subject.
Related Kentucky Property Valuation Questions
- In Kentucky, a property's 'as-is' value versus its 'as-repaired' value may differ significantly when:
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- A Kentucky appraiser must retain a copy of their completed appraisal report for how long after the date of the report?
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