Property Valuation
The sales comparison approach adjusts the sale prices of comparable properties for differences with the subject property. If a comparable sold for $500,000 and has a feature the subject lacks, the appraiser should:
AAdd value to the comparable's sale price
BSubtract value from the comparable's sale price✓ Correct
CIgnore the difference if it is less than 5%
DIncrease the subject's estimated value
Explanation
When a comparable has a feature the subject lacks, the comparable is superior. To bring the comparable in line with the subject, the appraiser subtracts value from the comparable's sale price.
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