Which statement best expresses why the pool adjustment is applied upward when the subject has a pool?

Which statement best expresses why the pool adjustment is applied upward when the subject has a pool?

• A. The subject is superior, so the comparable is adjusted upward
• B. The subject is inferior, so the comparable is adjusted downward
• C. The pool adjustment should always be downward
• D. The adjustment is unrelated to pool presence

Answer: (A)

In this situation, the key idea is that adjustments reflect how much a feature adds value. A pool is a value-adding feature, so when the subject has a pool and the comparables do not, the comparables must be increased in price to account for that extra desirability. By raising the comparable’s value, you’re effectively estimating what the subject would be worth if it didn’t have to be adjusted up to reflect the pool’s presence. In short, the adjustment goes upward because the subject’s pool makes it superior in value, and you’re calibrating the comparables to that reality.

In this situation, the key idea is that adjustments reflect how much a feature adds value. A pool is a value-adding feature, so when the subject has a pool and the comparables do not, the comparables must be increased in price to account for that extra desirability. By raising the comparable’s value, you’re effectively estimating what the subject would be worth if it didn’t have to be adjusted up to reflect the pool’s presence. In short, the adjustment goes upward because the subject’s pool makes it superior in value, and you’re calibrating the comparables to that reality.