What adjustment should be made if Comp #2 has fewer bedrooms than the subject property?

What adjustment should be made if Comp #2 has fewer bedrooms than the subject property?

• A. Add $7,500 to comp #2 value
• B. Add $7,500 to the subject base
• C. Subtract $7,500 from comp #2 value
• D. Subtract $7,500 from the subject base

Answer: (A)

When comparing properties in real estate, it's crucial to adjust the values of comparable properties (comps) to account for differences in features, such as the number of bedrooms. If Comp #2 has fewer bedrooms than the subject property, it is less desirable and thus typically commands a lower price. To adjust for this discrepancy, you would need to add value to Comp #2 to reflect the additional bedroom benefit that the subject property offers. Adding $7,500 to the value of Comp #2 effectively raises its value to be comparable to the subject property, which is essential for an accurate valuation and comparison. This adjustment aligns with the principle of making comps equivalent to the subject property in terms of desirability and utility, thus providing a more accurate basis for determining market value. In this context, the other options do not adequately address the need to increase the value of Comp #2 to reflect the additional bedroom.

When comparing properties in real estate, it's crucial to adjust the values of comparable properties (comps) to account for differences in features, such as the number of bedrooms. If Comp #2 has fewer bedrooms than the subject property, it is less desirable and thus typically commands a lower price.

To adjust for this discrepancy, you would need to add value to Comp #2 to reflect the additional bedroom benefit that the subject property offers. Adding $7,500 to the value of Comp #2 effectively raises its value to be comparable to the subject property, which is essential for an accurate valuation and comparison. This adjustment aligns with the principle of making comps equivalent to the subject property in terms of desirability and utility, thus providing a more accurate basis for determining market value.

In this context, the other options do not adequately address the need to increase the value of Comp #2 to reflect the additional bedroom.