Property Valuation
A Montana ranch appraiser identifies that a comparable ranch sold for $1.8 million and included water rights valued at $200,000. When using this comparable for a subject ranch without those water rights, the appraiser should:
AUse the full $1.8 million as the comparable sale price
BMake a negative adjustment of $200,000 to the comparable to reflect the subject's lack of water rights✓ Correct
CExclude this comparable entirely
DAdd $200,000 to the subject's value to account for the missing water rights
Explanation
Since the comparable has water rights valued at $200,000 that the subject lacks, a negative adjustment of $200,000 is made to the comparable sale price, making it more equivalent to the subject: $1.8M - $200K = $1.
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