Utilities and their availability are essential to every market analysis and highest and best use opinion but rarely require adjustments in the sales comparison approach.

• A. True
• B. False
• C. It depends on market conditions
• D. Not enough information

Answer: (B)

Utilities availability affects how usable and valuable a property is, so it should be considered in market analysis and in forming a highest-and-best-use opinion. In the sales comparison approach, you adjust for differences between the subject and the comparables that buyers would view as value-impacting. If one property has public water and sewer and reliable service while another relies on well, septic, or has intermittent outages or higher connection costs, buyers would value those differences differently, and you’d make adjustments accordingly. Even in markets where utilities are generally standard, there are often variations among properties that require adjustments. Only when all comparables share the same utility setup would an adjustment be unnecessary. So the statement is false.