If a subject has energy-efficient windows, and a comparable does not, what is the most likely market-driven approach to adjustment?

• A. No adjustment may be necessary if the market does not recognize the difference.
• B. Always apply a fixed adjustment for energy efficiency.
• C. Adjust only if the feature adds monetary value to sale price.
• D. Ignore energy efficiency features entirely.

Answer: (A)

In the sales comparison approach, adjustments are driven by what the market actually recognizes and pays for features. Energy-efficient windows may or may not command a price premium, depending on buyers in that market. If the subject has this feature and comparable sales do not, the prudent step is to look for market evidence of a price difference. If recent transactions show no premium for energy efficiency, no adjustment is made because the market hasn’t monetized that feature. Only if the data indicate a measurable premium would you quantify and apply an adjustment for it. This approach ensures adjustments reflect real market value rather than assumed benefits.