In a sales comparison analysis, which aspect does the indicated pool adjustment quantify?

• A. The magnitude of the adjustment to reflect pool superiority
• B. The property's tax assessment
• C. The mortgage rate
• D. The building's occupancy rate

Answer: (A)

In the sales comparison approach, any adjustment is used to reflect how much a particular difference between properties affects market value. A pool is an amenity that buyers may pay extra for, so the pool adjustment expresses the dollar amount that the pool contributes to the property's value. It tells you how much more (or less) a comparable property with a pool is worth relative to one without, so you can adjust prices to a common basis. The other options aren’t about the value buyers place on a pool: tax assessments relate to taxes, mortgage rate relates to financing terms, and occupancy rate relates to income properties, not the market value impact of a pool.