If the subject has a pool and a comparable sale without a pool sold for $30,000 per unit, what is the dollar adjustment that should be made?

If the subject has a pool and a comparable sale without a pool sold for $30,000 per unit, what is the dollar adjustment that should be made?

• A. Upward by $7,200
• B. Downward by $7,200
• C. Upward by $22,800
• D. No adjustment

Answer: (A)

In the sales comparison approach, you adjust comparable sales for differences in features so each comp reflects the same characteristics as the subject. If the subject has a pool and the comparable does not, you increase the comp’s price to account for the pool’s value. The problem provides that the pool adds 7,200 dollars per unit, so you would raise the comparable’s unit price from 30,000 to 37,200. That’s an upward adjustment of 7,200 per unit. The other options don’t fit because they either ignore the pool’s added value or imply a downward or larger adjustment not supported by the given data.

In the sales comparison approach, you adjust comparable sales for differences in features so each comp reflects the same characteristics as the subject. If the subject has a pool and the comparable does not, you increase the comp’s price to account for the pool’s value. The problem provides that the pool adds 7,200 dollars per unit, so you would raise the comparable’s unit price from 30,000 to 37,200. That’s an upward adjustment of 7,200 per unit. The other options don’t fit because they either ignore the pool’s added value or imply a downward or larger adjustment not supported by the given data.