An elevator is not present in an office building. Comparable Sale 1 had an elevator installed at a cost of $50,000, allowing an extra $3,000 per year in rent. The Gross Income Multiplier is 20. What is the appropriate adjustment for the elevator?

• A. $150,000
• B. $60,000
• C. $3,000
• D. $10,000

Answer: (B)

When a physical feature changes the property's income, convert that change in gross income into value using the gross income multiplier. The elevator adds $3,000 per year to gross rent. With a GIM of 20, that extra income implies a value change of 3,000 × 20 = 60,000. Since the subject lacks the elevator and the comparable has it, you adjust the comparable downward by 60,000 to make them comparable. The elevation’s construction cost (50,000) isn’t the market value impact here; the relevant figure is the income-based value, which is 60,000.