If a comparable sale is determined to be inferior to the subject property, what type of adjustment is typically applied to the sale price?

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Master the Mckissock General Appraiser Sales Comparison Approach Test with comprehensive quizzes and explanations. Enhance your skills in the appraiser profession and pass your exam with confidence!

Multiple Choice

If a comparable sale is determined to be inferior to the subject property, what type of adjustment is typically applied to the sale price?

Explanation:
When a comparable sale is inferior to the subject property, you increase the comparable’s price to make it comparable to the subject. This is a positive adjustment—the value is added to the sale price to compensate for the comp’s deficiencies. The idea is to align the comp with the subject's higher value by acknowledging its weaker aspects with an upward adjustment. If the comparable were superior, you’d apply a negative adjustment to bring its price down.

When a comparable sale is inferior to the subject property, you increase the comparable’s price to make it comparable to the subject. This is a positive adjustment—the value is added to the sale price to compensate for the comp’s deficiencies. The idea is to align the comp with the subject's higher value by acknowledging its weaker aspects with an upward adjustment. If the comparable were superior, you’d apply a negative adjustment to bring its price down.

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