If the subject has superior amenities relative to the comps, which direction should the adjustment move?

• A. Adjust the comparables upward
• B. Adjust the subject upward
• C. No adjustment
• D. Adjust the comparables downward

Answer: (A)

In the Sales Comparison Approach, adjustments are made to account for differences between the subject and the comparables. If the subject has superior amenities, the subject is worth more than the comparables. To put the comparables on the same footing, you increase the value of the comparables (adjust them upward) to reflect those additional amenities. The size of the upward adjustment comes from market evidence of how much those features add value. If the subject were inferior in amenities, you’d move in the opposite direction. Here, the appropriate move is upward for the comparables.