Which adjustment is typically applied when a comparable sale is superior to the subject property?

• A. Positive adjustment
• B. No adjustment
• C. Negative adjustment
• D. Inflation adjustment

Answer: (C)

When a comparable sale is superior to the subject, you adjust the sale price downward for that superior quality. In the sales comparison approach, you remove the extra value that the better features or desirability of the comparable would imply, so you subtract that amount from the comparable’s price. The result is an adjusted price that reflects what the subject would likely command if it had the same advantages. For example, if the comparable’s sale price is $320,000 but it has a feature worth about $8,000 more than the subject, you would apply a negative adjustment of $8,000 to the comparable, producing an adjusted price of $312,000. Positive adjustments would be used if the comparable were inferior, not superior, and inflation/time adjustments address timing, not differences in quality.