The subject property has a pool valued at $30,000 and two bathrooms valued at $10,000 each. Comp 1 does not have a pool and has one less bathroom than the subject property. What adjustments should be made to Comp 1's value?
Adjustments should be made to Comp 1's value by adding $40,000.
To align Comp 1 with the subject property, we need to account for the value of the pool and the additional bathroom that the subject property possesses. The pool is valued at $30,000, and each bathroom is valued at $10,000. Since Comp 1 lacks a pool and has one less bathroom, the total adjustment necessary is $40,000.
This option incorrectly suggests a reduction in value. Since Comp 1 is missing a pool valued at $30,000 and one bathroom valued at $10,000, the proper adjustment should involve adding to Comp 1's value to reflect what it is lacking, not subtracting.
This choice underestimates the total adjustments needed. While it correctly identifies that Comp 1 requires an increase in value, it fails to account for the full value of both the pool and the extra bathroom, which sums to $40,000 rather than $20,000.
This option correctly accounts for the full value of the pool ($30,000) and the additional bathroom ($10,000), totaling $40,000. Thus, this adjustment accurately aligns Comp 1's value with the subject property.
This choice incorrectly suggests a reduction in value. Like option A, it does not recognize that Comp 1's value should be increased to match the subject property, given that it lacks both a pool and an extra bathroom.
When comparing properties in real estate, adjustments must be made to reflect differences in features. In this case, Comp 1 lacks a pool valued at $30,000 and one bathroom valued at $10,000. Therefore, the total adjustment of $40,000 must be added to Comp 1's value to appropriately align it with the subject property’s features.
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