An appraiser uses a comp that sold for $320,000. The comp has a pool (value +$8,000) but lacks a garage (value -$12,000) compared to the subject. The adjusted comp value is:
Why $324,000 Is Correct
Answer B: $324,000
The appraiser adjusts the comparable to match the subject. The comp has a pool the subject lacks, so subtract $8,000. The comp has no garage, which the subject has, so add $12,000. Adjusted value = $320,000 - $8,000 + $12,000 = $324,000. Fannie Mae's guide says adjustments reflect the market's reaction to differences between the properties and are applied to the comparable sale price.
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
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Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
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