Adjustments for physical characteristics are intended to capture the dimensions in which a comparable property differs physically from the subject property.If the only physical difference between the subject property and the comparable is that the comparable does not have a fireplace,which of the following adjustments should take place?
A)The transaction price of the comparable property should be adjusted downward.
B)The transaction price of the comparable property should be adjusted upward.
C)The transaction price of the comparable property should not be adjusted.
D)There is no way to estimate the price of the subject property.

Question

Quizplus · Accepted Answer

If the only difference between the subject property and the comparable is that the comparable does not have a fireplace, then the transaction price of the comparable property should be adjusted upward to account for the value of the fireplace in the subject property. This adjustment reflects the fact that buyers may see value in having a fireplace in their home and be willing to pay more for a property that has one.

Adjustments for Physical Characteristics Are Intended to Capture the Dimensions