A comparable sale that requires a location adjustment is most likely to be a:

• A. May be a meaningful indicator of value for the subject
• B. Must be disregarded
• C. Is always the best indicator
• D. Is never used in the sales comparison

Answer: (C)

Location is a major driver of value, and the sales comparison approach relies on adjusting for differences between the subject and the comparables, including where the property sits in the market. If a comparable sale requires a location adjustment, that means its location differs from the subject in a way that meaningfully affects value, and you’ll quantify that difference through the adjustment. Because the impact of location on price is typically substantial, applying this adjustment makes the comparison more informative and directly relevant to the subject’s location. In that sense, a comparable that needs a location adjustment often provides the strongest, most on-point indication of value for the subject after the adjustment is applied.