A comparable property sold for $80,000. In the sales comparison grid, two downward adjustments were made: 10% for financing terms and 10% for market conditions. What is the net adjusted sale price?

• A. $64,800
• B. $72,000
• C. $68,000
• D. $80,000

Answer: (A)

In the sales comparison approach, adjustments are made to the sale price of the comparable to reflect differences with the subject. When two adjustments are both downward by 10%, apply them one after the other. Starting from 80,000, the first 10% reduction yields 72,000. A second 10% reduction on that amount gives 64,800. The overall effect is a compounded reduction (0.9 × 0.9 = 0.81), so the net adjusted sale price is 64,800. If you treated them as a single 20% cut, you’d get 64,000, which ignores the compounding of sequential adjustments.