If the subject property has one less bathroom than a comparable property, how is the sales price adjusted?

If the subject property has one less bathroom than a comparable property, how is the sales price adjusted?

• A. The value of the bathroom will be subtracted from the price of the comparable
• B. The price of the subject property is decreased by the bathroom value
• C. The bathroom value is added to the comparable price
• D. The subject's price would reflect the missing bathroom

Answer: (A)

In the sales comparison approach, you adjust the price of the comparable properties to account for differences with the subject property. If the subject has one less bathroom than the comparable, the comparable is more valuable because of that extra bathroom. To make them truly comparable, you subtract the value of that additional bathroom from the comparable’s price. This produces an adjusted price for the comparable that reflects what it would be worth if it had the same number of bathrooms as the subject, and that adjusted figure is used to estimate the subject’s value. Adding the bathroom value to the comparable would overstate the price, while decreasing the subject’s price or vague phrasing doesn’t directly show the adjustment process.

In the sales comparison approach, you adjust the price of the comparable properties to account for differences with the subject property. If the subject has one less bathroom than the comparable, the comparable is more valuable because of that extra bathroom. To make them truly comparable, you subtract the value of that additional bathroom from the comparable’s price. This produces an adjusted price for the comparable that reflects what it would be worth if it had the same number of bathrooms as the subject, and that adjusted figure is used to estimate the subject’s value. Adding the bathroom value to the comparable would overstate the price, while decreasing the subject’s price or vague phrasing doesn’t directly show the adjustment process.