Due to the differences in square footage and bedrooms between a comparable and the subject, you make which adjustment to the comparable?

Due to the differences in square footage and bedrooms between a comparable and the subject, you make which adjustment to the comparable?

• A. a plus $8,000 adjustment
• B. a minus $8,000 adjustment
• C. no adjustment
• D. a minus $5,000 adjustment

Answer: (B)

In the sales comparison approach, you adjust the price of a comparable to account for differences between it and the subject property so you’re comparing apples to apples. When the comparable has more square footage and more bedrooms than the subject, those features are more valuable and push the comparable’s price higher. To make the comparison fair, you subtract the value of those extra features from the comparable’s price. If the differences total $8,000, you apply a minus $8,000 adjustment to the comparable. If the situation were reversed (the subject had more space or more bedrooms), you’d add to the comparable’s price instead.