Using the sales comparison method, how should the property adjustment be made for a comparable property worth $10,000 more?

The sales comparison method relies on adjusting the value of comparable properties to account for differences between those properties and the subject property. In this scenario, if the comparable property is valued at $10,000 more than the subject property, adjustment is necessary to account for that difference.

To find the value of the subject property based on the comparable, you would subtract the excess amount from the comparable property’s value. By subtracting $10,000 from the comparable property, the goal is to align its value with that of the subject property, thereby accurately reflecting what the subject property would sell for in the current market.

This adjustment mechanism is essential in real estate appraisal as it ensures that the analysis leads to a fair comparison by making explicit considerations of differences in value due to various factors such as size, location, features, and condition. Thus, the correct method is to subtract the additional amount from the comparable property’s value to accurately represent the value of the subject property.