Property Valuation
When a Pennsylvania appraiser notes that a comparable sale involved 'seller concessions' (closing cost credits), the appraiser should:
AIgnore concessions since they don't affect value
BAdjust the comparable's sale price downward by the amount of the concessions✓ Correct
CAdd the concession amount to the comparable's sale price
DOnly adjust if concessions exceed 3% of the sale price
Explanation
Seller concessions inflate the nominal sale price — the buyer paid more than they otherwise would have because part of their costs were covered. To isolate the 'cash equivalent' price, appraisers adjust the comparable's sale price downward by the amount of the concession. This yields a market-based price comparable to unconcessioned sales.
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