In the corner versus side street example, the corner location adds how much more value than a side street?

In the corner versus side street example, the corner location adds how much more value than a side street?

• A. 5,000
• B. 10,000
• C. 20,000
• D. 15,000

Answer: (D)

Location adjustments in the sales comparison approach reflect how market participants value differences in site features. A corner lot typically has greater exposure and better visibility, access, and flexibility than a side-street lot, which raises its value. In this example, the premium for a corner location over a side street is 15,000. So when adjusting a comp to reflect a corner subject, you would add 15,000 to the comp price to capture that advantage (or reverse if valuing the other way). The other dollar amounts don’t fit the scenario because the demonstrated corner premium is 15,000.

Location adjustments in the sales comparison approach reflect how market participants value differences in site features. A corner lot typically has greater exposure and better visibility, access, and flexibility than a side-street lot, which raises its value. In this example, the premium for a corner location over a side street is 15,000. So when adjusting a comp to reflect a corner subject, you would add 15,000 to the comp price to capture that advantage (or reverse if valuing the other way). The other dollar amounts don’t fit the scenario because the demonstrated corner premium is 15,000.