Property Valuation
When using the sales comparison approach, an appraiser in South Dakota makes adjustments to comparable sales for differences from the subject property. Which statement about adjustments is correct?
AAdd to the comparable when the comparable is superior to the subject
BSubtract from the comparable when the comparable is superior to the subject✓ Correct
CAlways add to comparables for any difference
DAdjustments are only made for price differences, not features
Explanation
When a comparable is superior to the subject in a particular feature, subtract from the comparable's price (the comparable's superiority inflated its price). When the comparable is inferior to the subject, add to the comparable's price. The direction is: CBS — Comparable Better, Subtract.
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