Real Estate Math

A Nevada appraiser makes a $5,000 positive adjustment to a comp for the subject's extra half-bath. What does this mean?

AThe subject is worth $5,000 less than the comp
BThe comp was $5,000 lower in value due to having one fewer half-bath; adding $5,000 to the comp's price adjusts it upward to reflect the subject's additional feature✓ Correct
CThe subject's value is reduced by $5,000
DThe comp had a half-bath and the subject didn't

Explanation

In the sales comparison approach, adjustments are made to comparable properties to make them more like the subject. A positive adjustment means the comp was inferior to the subject in that feature, so the comp's price is adjusted upward to reflect what it would have sold for with that feature.

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