Property Valuation
In the sales comparison approach, what is an 'adjustment' and how is it applied?
AAn adjustment is a change to the listing price at the seller's request
BAn adjustment is added to or subtracted from a comparable's sale price to account for differences between the comparable and the subject property — if the comparable is superior, subtract; if inferior, add✓ Correct
CAn adjustment is a fee paid to the appraiser for using outdated comparables
DAn adjustment is the difference between assessed and appraised value
Explanation
In the sales comparison approach, appraisers adjust comparable sales to make them equivalent to the subject property. If a comparable has a feature the subject lacks (e.g., a pool), the appraiser subtracts the pool's value from the comparable's price. If the subject has something the comparable lacks, the appraiser adds that value. The result is an adjusted sale price for each comparable, used to bracket the subject's estimated value.
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